Sebi norm may force hedge funds to cut exposure to biggest gainers

These norms will only apply to category III AIFs which are also called hedge funds. These funds are allowed to invest only in listed securities.

Synopsis
Indian equity hedge funds are in a spot following a clarification issued by the capital markets regulator on their portfolio composition that could require them to cut exposure to their best performing stocks.

Mumbai: Indian equity hedge funds are in a spot following a clarification issued by the capital markets regulator on their portfolio composition that could require them to cut exposure to their best performing stocks. According to Securities and Exchange Board of India rules, category III Alternative Investment Funds, also known as hedge funds, cannot invest more than 10% of their portfolio in a single stock. These are products for the rich with

Pavan Burugula

ET Bureau

4 mins read, Last Updated:

Nov 24, 2021, 06:01:00 AM IST

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