Karl Francis

An Interesting Development With India Funds

To conclude the discussion if this stock can be shorted:
Today I again placed a short order with Interactive Brokers. The order was accepted immediately and executed at the limit price.

An Interesting Development With India Funds

David Fry: I didn't place the short order in a test account, but as a limit order in a real account. It was accepted immediately. With "testwise" I mean that I canceled the order before execution because the exaggeration doesn't seem to have run its course.
Maybe I'll try again and wait for the execution.

An Interesting Development With India Funds

Thanks for the background information. I just learned the difference between ETN and ETF. INP is just an unsecured debt instrument. People who buy that stuff right now really do not realize that the link to the MSCI India index is broken and that they could buy into the same underlying assets for close to 30% less by buying the IFN, with the added security that investment is backed by real India shares and not only by Barclay's good name.
By the way, I was able to place a short order (testwise) through Interactive Brokers without any problems.

An Interesting Development With India Funds

David Fry:
I thought that index funds always closely mimic the index. Did you find out how that premium build up and what's the reason?
If such an instrument can trade at a premium, could it also trade at a discount? At least, this is not the idea of an index fund.
Thank you for your contributions