RBI Limits Drive Premiums in Indian International ETFs
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Some international Exchange Traded Funds (ETFs) listed on domestic exchanges are trading at prices significantly above their Net Asset Values (NAVs). This situation is linked to the fact that the mutual fund industry has reached its $7-billion overseas investment limit. This limit restricts fresh investment in international securities by Indian mutual funds.
From indiatimes.com
Why it matters
The restriction on overseas investments creates a demand-supply imbalance for international ETFs. This imbalance may cause these funds to trade at a premium to their underlying value. Separately, Gautam Adani reclaimed the top spot as India’s richest, edging out Mukesh Ambani.
From indiatimes.com
Who's involved
- Mukesh AmbaniIndian businessman who is ranked in global net worth rankings
- Gautam AdaniIndian businessman who reclaimed the top spot in global net worth rankings
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The entities involved
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Mukesh Ambani
Indian businessman
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Gautam Adani
Indian businessman
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Nikhil Gupta
researcher ORCID ID = 0000-0002-5605-0459
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