Danger of Hedge Funds: FII Inflows and Regulatory Helplessness

Our political establishment is taking grave risks in allowing unrestricted FII inflows without appropriate disclosure and scrutiny. We cannot afford the luxury of waiting indefinitely till good sense dawns on the US regulatory and political establishments. We should therefore take the lead for concerted action by the developing countries, for in the coming months it is the currencies of these countries and some of their major corporate players that could be the obvious targets of hedge funds. The barbarians have crossed the gate and are inside our arena. Where is our strategy to discipline them?