With India’s economy and stock market booming there seems no reason for investors seeking exposure to the country to take anything other than an index-tracking approach. In 2007, the benchmark Bombay Stock Exchange BSE Sensex rose more than 50 per cent and prior returns have been equally impressive as the Indian economy averaged 8.6 per cent growth over the last four years.

So any fund seeking to trade distressed Indian assets would appear to have its wires crossed. In the midst of such explosive growth, surely distressed assets are few and far between?