Sun, Aug 2, 2015
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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner