Hedge-fund king George Soros is in discussions to purchase an investment in the Bombay Stock Exchange, part of his ongoing interest in emerging market shares, according to people close to the matter.

The deal by Soros Fund Management, Soros's $27bn (€20.8bn) firm, still needs to be approved by federal regulators, according to these people. The slated transaction, which was first reported by the Financial Times, would be to buy a 4% stake in the exchange held by Dubai Holding for about $40 million. Indian rules restrict foreign investors to stakes of up to 5% in local exchanges.