India must align FPI tax rules with global norms to attract foreign investors: Former SEBI member
CNBC-TV18 1 hr ago·6 Nov 2026, 7:22 am
Former SEBI member Ananth Narayan argues that India's current tax structure is an outlier. Unlike most major economies that tax foreign investors based on their residence, India taxes them at the source. This means Foreign Portfolio Investors (FPIs) pay capital gains tax in India even if they are tax residents of other countries.
This difference in tax treatment can make Indian assets less attractive compared to peers. If India aligns its rules with global norms, it could simplify compliance for foreign investors and potentially boost foreign inflows into the domestic market.
Investors should watch for any policy changes from the government or Finance Ministry. A shift toward residence-based taxation could signal a more investor-friendly environment, while maintaining the status quo might limit capital inflows.
Key takeaways
- Category: Corporate Action.
- Flagged as a high-impact, market-moving story.
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