RBI action raises alarm for Indian funds industry

Alarm bells are ringing once again for India’s funds industry following liquidity tightening by the central bank to prop up a weakening rupee and rein in a sprawling current account deficit. Hopes had been high among asset managers that 2013 would be the year for fixed income funds to make their mark. Things had been going according to plan, too, with three 25-basis-point cuts in interest rates between January and May. However, India is lumped in the emerging markets bucket that…