NEW DELHI: Indian mutual funds have roped in global consultant KPMG to help them prepare for the Foreign Account Tax Compliance Act (FATCA) - a new law enacted by the U.S. to help combat tax evasion by Americans through overseas entities including in India.

FATCA, which took effect from July 1, may have significant implications for Indians residing in the U.S. and investing in products offered by the Rs 10 trillion Indian mutual fund industry.

The implementation of the new tax evasion law is also expected to result in increased legal and compliance costs for the mutual fund houses here.

According to official sources, mutual fund houses have together roped in KPMG to help them meet the guidelines under FATCA, rather than individual funds hiring different consultants to meet the tedious FATCA reporting requirements.

Currently, there are 44 players operating in the mutual fund industry.

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