FPI-PWC 2 L(Bcm10)

The survey also said that 77 per cent of the FPIs find The survey also said that 77 per cent of the FPIs findthe country’s regulatory environment challenging compared toother emerging markets, while 88 per cent viewed the currenttax regime as a challenge. Swamy noted that FPIs do not favourably view Sebi’s planto tighten High Frequency Trades (HFT) and feel that any"speed bumps" in it could dry up the liquidity in thefinancial markets. FPIs are biggest users of HFT. "GAAR (General anti-avoidance rule), offshore transferprovisions, safe harbour provisions withdrawal of capitalgains benefits under the India-Mauritius treaty and itscollateral impact on the India-Singapore treaty are adding tothe challenging environment," Swamy said. On the positive side, about 67 per cent respondents sawIndia as a preferred investment destination among emergingmarkets, while 63 per cent of investors believe that capitalgain tax in India is satisfactory. Another 77 per cent FPIs surveyed were found to besatisfied with the ultimate outcome of minimum alternate tax(MAT) controversy. Over 60 per cent of FPIs are satisfied with Sebi’sresponses to their queries, while 73 per cent also foundSebi’s increase in FPI limits in a company as "adequate". Currently, FPIs are not permitted to purchase equityshares of more than 10 per cent of the total issued capital ofa company. PTI SSM ARS JMABISRE