India’s capital market regulator is proposing allowing asset management companies to offer hedge fund-like products for mom-and-pop investors as it steps up efforts to curb proliferation of unauthorized investment products.
The Securities and Exchange Board of India has proposed a “new asset class” that will lie between a traditional pooled investment vehicle like a mutual fund and discretionary portfolio management service, according to a consultation paper on its website. This “new asset class” will include products like a long-short strategy and inverse exchange-traded funds where asset managers can pool investments from retail investors.
