India's Union Budget Cause a Threat to FPI's
The union budget 2019 has not appeased the overseas investors, as it has imposed higher tax over all super rich individuals to bypass the levies, which is quite hard to implement. Alarmed investors liquidated nearly $42 billion from the benchmark S&P BSE Sensex since the announcement of the budget. India has more than 9000 FPI’s registered with SEBI until the end of 2018. Being an irresistible investment destination for global investors, Indian economy continues to provide an attractive investment plan with the massive opportunities. This move in the budget would greatly impact the long term money received through the mutual funds and pension funds.
Certain industry bodies, who represent the FPIs such as Asset Managers Roundtable of India, are trying to lobby the finance ministry and other sections of government to obtain an exemption on surcharge. Besides, the legal experts say, if the government wants to exempt surcharges imposed on FPIs it has to insert a churn-out in the Finance Bill and make the required changes in the Part – II of the first schedule before it is been passed into the law.