Recently the Indian government has proposed severely limiting how foreign investors (i.e. us Americans) invest directly in local Indian shares of stock. They want to get rid of participatory notes, the main way to invest in the Indian market directly if you are a casual investor (not the same as investing in Indian ADRs). As a result, all ADR indian stocks dropped ~5% today.
Link:
Sebi limits PNs
Apparently the main reason why the Bombay Stock Exchange (India's main stock market) was going up was because of foreign investors.
Do you think the drop in the stock price of all the ADRs was deserved? Do you think we will see a rebound tomorrow? What are the chances of the Indian govt going thru with these restrictions?