Samir Arora, founder and fund manager at Helios Capital Management (Photographer: Amit Bhargava/Bloomberg)

Fund Managers’ Ease Of Doing Business Has Deteriorated In India, Says Samir Arora

The ease of doing business for fund managers has deteriorated in India. That’s according to Samir Arora, fund manager at Helios Capital.

“It’s a tough market and our system is not helping,” Arora told BloombergQuint in a video interview.

The measures announced by market regulator SEBI to curb fund round-tripping and money laundering has left non-resident Indians, foreign portfolio investors, and India-based investment managers worried. While custodians and lawyers are in the process of seeking clarity from the market regulator, they say if SEBI maintains its stance, it would impact existing FPI structures.

These rules are discouraging investors from investing in India, Arora said. “We are committed to India but the world does not have so much time.”

Also read: Three Casualties Of A Recent SEBI Diktat: FPIs, NRIs And Indian Investment Managers

‘Correction In Mid And Small Caps Not Over Yet’

The correction in the mid- and small-cap stocks is likely to continue, Arora said.

While the S&P BSE Sensex’s 7.2 percent jump this year makes it one of Asia’s best-performer, a sell-off in mid- and small-cap stocks - made worse by stringent margins imposed in June - has left smaller firms trading near the biggest price discount to the index since July 2016, data compiled by Bloomberg show.

The large caps or the quality side of the market will continue to outperform only because of the uncertainty around us, regulatory and otherwise.” 
Samir Arora, Fund Manager At Helios Capital

Watch the interview here: