wedges and weights

maybank securities is the adani enterprises anchor investor with 34% of the offering. the balance spreads through the gulf and the local public sector. offshore shorts transmit risk to onshore dealers who have to hedge the risk sold. the hedge can not be in the illiquid underlying but the liquid index.

in theory if this becomes a matter of sovereign pride then the public sector institutions are directed to intervene and buy at any price. examples. japanese denial, majority ownership of public securities, and quantitative infinity. the challenge is that the economy imports capital to pay the energy bill and fund subsidies for over one sixth of the globe's population. the central banks printing press is sovereign. over fifty percent of the equity index float is held by foreign funds subject to redemptions.

one suggestion is to just clean up the act. bring the capital flown onshore. the optics and the confidence would be rewarded.

babies and bathwater

wedges and weights