Private credit might be less attractive than it was last year as investors rush into the market, but there are sweet spots to be found.
The Securities and Exchange Board of India (SEBI), the Indian securities market regulator, has now permitted short selling of securities by institutional investors and the simultaneous introduction of short selling transactions in India.
The bankÆs securities services division in India will be able to clear positions on the National Stock Exchange of India and the Bombay Stock Exchange on behalf of investors when the securities lending market goes live.
"This is another step forward for the Indian capital markets because it provides another option for investors to trade in the Indian market and look for opportunities that align with their investment strategies,ö says Vikramaaditya, head of HSBC Securities Services India.
ôFor our clients who wish to undertake such transactions, this is another value-added service that we can integrate with other services they use, such as cash settlements, options and futures," he adds.
Local and cross-border investors will now be able to clear their securities lending transactions, including equity, debt and derivative trades via the bank.
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Hesitancy aside, institutional investors eye Australia and Japan as promising geographies for private debt investments within Asia Pacific, with Greater China and Korea on the periphery.
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Regulators keep their eyes open on tightening insurance industry by introducing more detailed risk management requirements, which could bring pressure on smaller players.