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VOL. 11, ISSUE 4 (2025)
Growing role of hedge funds in India: An overview
Authors
Shashank Tyagi, Dr. Vivek Kumar
Abstract
There is no exact law for Hedge Fund in India.
Generally, it is recognized as Alternative investment fund by Securities and
Exchange Board of India (SEBI), to make huge amount of money by investing a
small portion of funds with minimum risk availability. The term Hedge Funds
represent into: firstly, the word ‘Hedge’ which means ‘Protection against risk’
and secondly ‘Funds’ which means Pool of funds. Thus, it is a pool of fund of
funds which includes the pension funds, university funds, pension funds etc.
with the guarantee or protection against risks. It is also known as richest
funds due to its nature and species. In India, the SEBI passed a SEBI
(Alternative Investment Funds) Regulations in 2012 to regulate these funds. As
per this regulation, the SEBI identified these funds in Category III. To fiscal
growth of hedge fund industry, the SEBI amended it in so many times such as
2015,2017,2023 & recently in April, 2024 [1]. In Present epoch, Hedge
fund is becoming an important segment of the asset management industry and
gaining popularity form the high net worth investors specially in term of
endowments and other institutional investors. Presently, some of the major
investments are Motilal Oswal's offshore hedge fund, Munoth
Hedge Fund, Quant First Alternative Investment Trust, IIFL Opportunities Fund,
India Zen Fund, etc [2]. Further, the SEBI also denoted the
adjudication method is Arbitration in light of protection for investors.
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Pages:17-20
How to cite this article:
Shashank Tyagi, Dr. Vivek Kumar "Growing role of hedge funds in India: An overview". International Journal of Law, Vol 11, Issue 4, 2025, Pages 17-20
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