'Volcker rule' looms over exchange IPOs

An American law could limit the universe of institutional investors that may invest in the coming Initial Public Offers (IPOs) of India's two major bourses, the BSE and National Stock Exchange (NSE).

The law in question is called the 'Volcker Rule', as it was enacted on the recommendation of Paul Volcker, a respected central banker. This US federal regulation prohibits banks from conducting certain investment activities with their own accounts, and limits their ownership and relationship with hedge funds and private equity funds, also called 'covered funds'.

It appears both BSE and NSE could be deemed 'covered funds'