M Damodaran, chairman, Securities and Exchange Board of India (Sebi) today ruled out the US subprime crisis as the single cause for the swing in markets, and also ruled out any separate regulation for hedge funds.Damodaran said the regulator would prefer hedge funds coming to the Indian markets directly than through offshore derivatives. He said registration of hedge funds with Sebi, as in the case of foreign institutional investors, would be enough.He pointed out that Sebi was not worried about the large number of players coming to India because their entry pre-supposes the constant returns being offered by the Indian markets besides a sound market regulatory mechanism.He said Sebi would soon issue guidelines for setting up a self-regulatory organisation (SRO) for investment advisors including brokers and the print and the electronic media."A single organisation covering all sets of investment advisors is going to be effective," he said while ruling out multiplicity of self-regulatory organisations.The purpose of self-regulation is to see that the advises on investments are given professionally and in a transparent way, Damodaran added.
