Fri, Apr 28, 2017
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: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  3. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  4. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob