'Foreign Investors Apprehensive About Retrospective Tax Demands'
According to depository data on Monday, FIIs are set to break an 11-month streak of net inflows into the Indian debt market, having turned net sellers in April for the first time since April 2014.
Net outflows till April 27 have been 
817 crore - in the wake of recent tax notices demanding tax at 20 percent on interest income, as opposed to five percent without minimum alternate tax (MAT).
The Indian government plans to set up a high-level committee to sort out taxation issues of the past and make the system predictable, Finance Minister Arun Jaitley, who has called the Cairn a "legacy" issue, announced on Monday.
"I am considering a high-level committee to explore what can be done to resolve the past and move beyond it in a way that would provide real predictability and certainty to investors," he wrote in an opinion piece in the Financial Times.
"Even though it is only the legacy issues that haunt us, we recognise that we must put a quick end to them," he added.
Addressing the annual general meeting here of the American Chamber of Commerce on Tuesday, Amitabh Kant, Industrial Policy and Promotion secretary, said the NDA government, which had been saddled with "tremendous legacy issues", was working overtime to resolve these and alluded to Jaitley's announcement.
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