Whenever there is a slight whiff of economic uncertainity, FIIs are the first to bail out of the market.
This time round, since the global markets are showing marked volatility, and the uncertainity still looms large, the Government of India is taking no chances.
In what may be perceived as a throwback to the British Raj days, India’s Central Board of Direct Taxes has decided to be partial to FIIs and FPIs, vis-à-vis their Indian counterparts.
These entities will not be subject to Minimum Alternative Tax, or MAT as it is popularly known. The Government hopes that with this sweetener, these Foreign Institutional Investors will come back to bolster the stock markets here.
