India finds some forward momentum

The global financial crisis could easily have sounded the death knell for India’s nascent structured products market. But as the country’s equity markets have resumed their upward trend, dealers say equity-linked structures are catching on fast.

Against a backdrop of tight regulations prohibiting the use of over-the-counter equity derivatives and high barriers to entry for foreign banks, India’s structured products market has lagged behind its regional counterparts. Equity-linked notes, the cornerstone of the structured products market, were only introduced in 2006, a mere two years before the credit crisis wreaked havoc with investor appetite.

“Structured products in India are a relatively recent phenomenon dating back to the launch of