The Security and Exchange Board of India (SEBI) registered mutual funds would be permitted to accept subscriptions from foreign investors to meet the KYC requirements for lawfulness schemes.
This would liberalise the portfolio investment route and enable Indian mutual funds to have direct access to foreign investors in Indian equity market, which had hitherto been restricted to only alien Institutional Investors (FIIs), sub-accounts registered with SEBI and NRIs.
There are 3 aspects to foreign investments in mutual fund units viz. -
Indian regulatory requirements which the pay Minister proposes to liberalise as above.
- Indian evaluate issues long expectant gains on sale of units of equity oriented fund which are subjected to Securities Transaction Tax are exempt. Short-term great gains are taxed @ 15%.
Offshore investors who are not residents of jurisdictions with whom India has a palmy tax treaty may be subjected to the short-term capital gains tax if they were to invest directly into India. Further, they may have to vouch taxation related compliances such(prenominal) as filing of tax returns. On the other hand, investors who have access to investment platforms which conduct a treaty protected jurisdiction may not be subject to this tax if they were to invest through such a platform.
-Foreign regulatory requirements offshore jurisdictions may require investment products offered to their residents or foreign AMCs to be registered with them. Whilst the Budget proposals may attempt to provide direct access to foreign investors, the mutual fund...If you involve to get a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment