New Delhi, Oct. 23 -- India's restrictions on overseas investments have created a two-tier market for global investing, with international exchange-traded funds (ETFs) from domestic fund houses trading at steep premiums to their underlying assets while investors buying overseas-listed equivalents can access them closer to market value.

All six international ETFs in India were trading at a premium on 30 September, with the average premium at 30.4%, according to a Mint analysis of data from Value Research. The Motilal Oswal Nasdaq Q50 ETF had the highest premium, at 63%. An ETF trades at a premium when its market price exceeds its net asset value (NAV), which represents the value of its underlying holdings.







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