Asia markets were pulled sharply into the red Wednesday, prompted by India, which plunged 9% on the open after regulators said they would limit trading in derivatives used by foreign investors. Trading was suspended for one hour to control the hemorrhage.The derivatives, known as participatory notes, allow foreign investors to trade anonymously in the Indian markets and have in large part accounted for gains of 55% on the Bombay Sensitive Index, or Sensex, since March this year. "A lot of foreign investors operate in India indirectly, and now the kind of money flowing in is so humongous, we don't know what the quality of that kind of money is," says Jayesh Shroff, a fund manager at SBI Mutual Fund in Mumbai, which has $6 billion under management. "We are trying to get a check on those kinds of inflows." The Sensex later recovered to close down 336 points, or 1.8%, to 18,715.82, after clawing back 1,047.92 points, or 8.1%, from its lows, but Indian shares were hit hard. Tata Motors ( TTM) fell 1.6% to 808.25 rupees, while in financials, HDFC Bank ( HDB) slipped 2.99%, to 1,459 rupees, and Icici Bank ( IBN) tumbled 3.45%, to 1,116 rupees. After trading near 52-week lows earlier in the day, Infosys Technologies ( INFY) closed up 1.16%, to 1,889 rupees, while Wipro ( WIT) lost 0.07%, to 485.90 rupees.