Sat, Mar 24, 2018
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. John Paulson, once the industry's largest hedge fund, to return some investors' money[more]

    Komfie Manalo, Opalesque Asia: John Paulson is reported to be retuning some of his investors' money as a number of his hedge funds continue to suffer setbacks, reports

  2. Institutional Investors - Overdrawn pension fund scores gains[more]

    From Investments in big banks, pawn shops and rolling papers helped boost public safety workers' underfunded pensions this past calendar years, according to newly released figures. After recording middling returns in recent years, the Police & Fire Pension Fund (P&F) notched

  3. Activist Investors - The seven most undervalued stocks in Larry Robbins' portfolio, Stamford hedge fund still seeking shakeup of Taubman board[more]

    The seven most undervalued stocks in Larry Robbins' portfolio From ...On February 14th, Larry Robbins' firm Glenview Capital Management filed its quarterly Form 13F regulatory filing. The firm's stock portfolio totals $18.5 billion with 58 positions according to the latest

  4. Hot hedge fund loses 21% after bet on volatility goes wrong[more]

    From In December, Shahraab Ahmad shared with his hedge fund clients the principle that helped him trounce peers for two turbulent decades: steer clear of the crowd. He'd turned $50 million into an operation with more than $700 million over three years and delivered market-beating retu

  5. Opalesque Exclusive: Northern Trust builds on blockchain-backed private equity solution[more]

    Bailey McCann, Opalesque New York: Private equity clients at Northern Trust can now carry out audits of private equity lifecycle events directly from the blockchain. Northern Trust, working with PwC and other audit firms in Guernsey, has added this feature to its existing solution set for private