The challenge for PowerShares will be getting around India’s rules about foreign stock ownership with its new India-focused exchange traded fund (ETF).

Instead of traditional ETFs, which use derivatives and/or notes that provide indirect exposure, the PowerShares India Portfolio (PIN) will provide direct exposure by owning local equities, PowerShares says. It will get around India’s restrictions through a proprietary formula, according to InvestmentWires.

The index is designed to track the performance of the equity markets as a whole with representation in various sectors: information technology, health sciences, financial services, heavy industry and consumer products. It’s expected to begin trading in mid- to late February.

There isn’t going to be just one India ETF, though: WisdomTree is launching one as well. The WisdomTree India Earnings (EPI) fund is expected to launch early this month. The fund will consist of 150 locally listed companies, reports Index Universe for Seeking Alpha, and only includes companies that were profitable in the previous reported 12 months.

Tags: Asia, Emerging Markets, ETNs, Financial, India, Retail, Sector ETFs, Technology