Reuters reveals India may exempt FPIs from higher taxes; market reacts

Reuters was first to report on August 8 that the Indian government will likely withdraw its proposal in its budget from early July to impose higher taxes on foreign portfolio investors (FPIs). India’s broader NSE index surged more than 1% on the news. The budget had imposed higher taxes on individuals and FPIs registered as trusts that earned more than 20 million rupees ($283,000) annually. In the three-and-a-half weeks after that proposal was announced, foreign investors had pulled out $1.8 billion from the Indian equities markets, sending benchmark indexes lower.