Hedge Funds & Their Impact on the Indian Capital Market

Tibrewal, Saket (2008) Hedge Funds & Their Impact on the Indian Capital Market. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Hedge funds are an investment structure that manages a private unregistered investment pool. They use several strategies like leveraging, long, short and derivative positions to generate high returns and hedge probable market risks. Hedge funds restrict their investment base to high net worth individuals rather than allowing the general public to invest in them.

By 2025 the Indian economy is projected to be about 60 per cent the size of the US economy. This is due to major initiatives undertaken by the Indian Government. One such effort was taken in 1993 when with the notification of SEBI (Mutual Fund) Regulations; the asset management business under private sector took its root in India. India today has much of the necessary institutional framework for hedging, including a regulatory regime and good information disclosure standards.

This study is written with an aim of providing a deeper insight into hedge funds and their possible impacts on the Indian Capital Market. Analysis has been done by using a Quantitative Research and using Statistical techniques like chi-square and coefficient of correlation.

The main advantages or impact of Hedge funds in India are that they bring in the much welcome volumes, and thus, liquidity in the market. Moreover, as all market experts will concede, market liquidity leads to better price discovery in the market.

Item Type: Dissertation (University of Nottingham only)
Keywords: Hedge Funds
Depositing User: EP, Services
Date Deposited: 02 Feb 2009
Last Modified: 08 Jan 2018 23:06
URI: https://eprints.nottingham.ac.uk/id/eprint/22392

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