The government in the recent budget proposed an increase in the tax surcharge for foreign entities which are registered as non-corporates. The move spooked investors as the surcharge will impact 40 per cent of the FPIs, as per various industry estimates. Finance minister Nirmala Sitharaman ruled out any possibility of a roll-back last week, sending the market tumbling. Here are the important things one should know about the issue:
What did the finance ministry propose in the Bu ..
Until now, FPIs have only been categorised based on their risk profiles i.e., least risky funds such as sovereign wealth funds have been termed as Category I FPIs while the most risky and unregulated funds are Category III. Compliance requirements of FPIs vary based on such risk profile.
However, the government has now introduced a new division within FPIs — corporates and noncorporates. This division based on structures of FPIs have nothing to do with the quality of money they bring or ..
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