Foreign investors' lobby group asks government to reconsider FPI tax hike
Updated : July 12, 2019 08:30 PM IST
Asset Managers Roundtable of India (AMRI), a lobby group of FPIs, said the higher tax could affect many large foreign mutual funds and pension funds, and hit India's reputation as a stable tax jurisdiction.
Indian stocks slumped after the budget document's fine print revealed the new tax will also apply to foreign portfolio investors (FPIs) setup as trusts to invest in Indian markets.
About 40 percent of roughly 9,400 FPIs investing in India are registered as trusts, according to tax experts, while the rest are registered as corporates. Together, they have invested nearly $50 billion in Indian equity, debt and hybrid products.
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