Thu, Feb 11, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Tax concerns see hedge funds fleeing India

Tuesday, May 29, 2012

From Precy Dumlao, Opalesque Asia – Hedge funds and several foreign institutional investors (FIIs) have packed up their bags and left India on concerns over the proposed tax rules that India plans to implement that could impact on their investments.

According to a report by Asian Investor, these short term investors that bought exposures to Indian securities using participatory notes or P-notes, have voiced concerns over the proposed general anti-avoidance rules (Gaar) that Indian regulator, Securities and Exchange Board of India (Sebi) plan to implement.

Under the proposed Gaar, a 15% capital tax gains will be imposed on investment gained within a 12-month period. This new rule does not sit well with hedge funds and FIIs. Investors believe that the Indian government will use Gaar as a leverage to clamp down on P-notes.

A separate report by Reuters earlier this week also pointed to the loss of confidence amongst hedge fund managers and foreign investors towards the slowing growth in India and the unstable monetary policies which resulted in outflow of money from India towards other emerging markets in Southeast Asia.

Compounding India’s problems are corruption scandals and high inflation which saw its economic growth at a three-year low while the fisca......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Opalesque Exclusive: Directors want to be considered trusted partners by new manager[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A hedge fund director provides her perspective on emerging hedge fund managers. She will happily work with those who have set themselves up for future growth, s