Asset management industry push for tax cuts to stem foreign exodus
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India’s $900-billion asset management industry wants the government to scrap capital gains tax for foreign investors to boost market appeal.
- ✓Global funds pulled out $27 billion this year, prompting calls for change.
- ✓"We need to showcase to the foreigners we want them," said Edelweiss Chairman Rashesh Shah on Friday.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Standard
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Asset managers argue removing capital gains levies could help improve after-tax returns for foreigners, a key factor in their calculations for portfolio allocation | Image: Bloomberg
By Advait Palepu and Ranjani Raghavan
India's $900-billion asset management industry wants the Narendra Modi administration to scrap capital gains tax for foreign investors, seeking to make the nation's markets more attractive and spur investment in stocks and fixed-income securities.
A higher levy on debt funds has also been a deterrent, fund managers say, who are seeking parity with stocks. Besides, uncertainty over the tax laws has created a headache for many firms -- including private equity giants from Wall Street -- who sometimes invest through overseas entities to efficiently manage their tax bills.
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