Business Standard-<\/p>\n
| Hedge funds accounted for nearly 90 per cent of the Rs 16,000 crore worth stocks sold by foreign institutional investors since July 27. <\/td>\n<\/tr>\n |
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| Top officials of foreign brokerages said except for the long-only hedge funds, other hedge funds have been selling continuously this month. <\/td>\n<\/tr>\n |
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| \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cYes, we have seen selling by hedge funds in India, and no major buying by other foreign clients,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said a senior executive of a Europe-based foreign brokerage. <\/td>\n<\/tr>\n |
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| Though hedge funds have been denied direct access to domestic markets, there are several hedge funds operating in the Indian markets. <\/td>\n<\/tr>\n |
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| Most hedge funds participate in Indian stock market through participatory notes \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 an offshore derivative instrument issued by India-registered brokerages where the underlying is Indian equities. Nearly 30 per cent of the FII investments of ($48 billion) are through the PN route. <\/td>\n<\/tr>\n |
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| The sales could be attributed to selling spree by hedge funds, which may be facing redemption pressures due to problems in the subprime market in the US. <\/td>\n<\/tr>\n<\/table>\n |