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May 19, 2015

India ignored warnings on foreign investor tax row -sources

MUMBAI, May 19 (Reuters) – India’s Finance Ministry could
have sidestepped a damaging multibillion-dollar tax row with
foreign investors if it had acted on regular warning letters
that officials had been sending since as long ago as September.

The warnings went unheeded, according to senior sources in
the tax department and finance ministry, until the dispute with
overseas investors over the imposition of the minimum alternate
tax (MAT), which had not previously been applied to them,
hammered the country’s stock and bond markets and dented the
business-friendly image of Prime Minister Narendra Modi.

May 7, 2015

Falling out of love, foreign funds dump Indian shares and bonds

MUMBAI (Reuters) – Overseas funds chalked up their biggest single-day sales of Indian shares and bonds in 1-1/2 years, fuelling concerns that an emerging market darling is losing its allure over growing anger over a tax on foreign investors.

The net sales of around $630 million on Wednesday, preliminary data showed, is the biggest since foreign investors sold around $877 million on Jan. 27 last year, a time of intense worry over higher U.S. interest rates.

May 4, 2015

Aberdeen launches legal challenge to tax demand

MUMBAI (Reuters) – Aberdeen Asset Management (ADN.L: Quote, Profile, Research) has filed a legal challenge against a tax claim in India, the latest twist in a dispute between foreign fund management groups and the government over retrospective taxes.

Uncertainty around the so-called minimum alternative tax on foreign asset managers’ past income has unsettled investors, contributing to sharp falls in India’s stock market.

May 4, 2015

Aberdeen launches legal challenge to India tax demand

MUMBAI, May 4 (Reuters) – Aberdeen Asset Management
has filed a legal challenge against a tax claim in India, the
latest twist in a dispute between foreign fund management groups
and the government over retrospective taxes.

Uncertainty around the so-called minimum alternative tax on
foreign asset managers’ past income has unsettled investors,
contributing to sharp falls in India’s stock
market.

Apr 30, 2015

SEBI asks asset managers to set up monthly stress tests

MUMBAI (Reuters) – The Securities and Exchange Board of India (SEBI) on Thursday asked asset managers to conduct monthly stress tests on their liquid and money market mutual fund portfolios to improve risk management across the sector.

SEBI said the tests should be conducted for risks from sudden destabilising changes in interest rates and credit conditions, as well as in liquidity and redemptions, according to a circular on its website.

Apr 30, 2015

India regulator asks asset managers to set up monthly stress tests

MUMBAI, April 30 (Reuters) – India’s capital market
regulator on Thursday asked asset managers to conduct monthly
stress tests on their liquid and money market mutual fund
portfolios to improve risk management across the sector.

The Securities and Exchange Board of India (SEBI) said the
tests should be conducted for risks from sudden destabilising
changes in interest rates and credit conditions, as well as in
liquidity and redemptions, according to a circular on its
website.

Apr 24, 2015

India to rule on MAT claims for tax treaty investors within a month

MUMBAI, April 24 (Reuters) – India’s tax department will
rule within a month on alternative tax claims made against
foreign investment funds that are covered by tax treaties, the
finance ministry said, as the government moves to defuse its
latest tax row with investors.

Foreign investors in India previously paid 15 percent on
short-term listed equity gains, 5 percent on gains from bonds,
and nothing on long-term gains. However, from late 2014 many
firms received notices demanding payment of a so-called minimum
alternative tax (MAT) on past income.

Apr 22, 2015

India seeks to calm investor jitters, stands firm on back taxes

MUMBAI/NEW DELHI, April 22 (Reuters) – Senior Indian finance
ministry officials sought to calm a tax row on Wednesday,
promising foreign investors a favourable environment, but
stopped short of scrapping unpopular plans to claim
retrospective payments.

Outside investors in India have previously paid 15 percent
on short-term listed equity gains, 5 percent on gains from
bonds, and nothing on long-term gains, but from late last year
many firms received notices requiring them to pay the so-called
Minimum Alternative Tax (MAT) on past income.

Apr 13, 2015

SEBI under fire over IPO bottleneck

MUMBAI (Reuters) – India’s market regulator, under pressure to tighten scrutiny, is taking as long as a year to approve initial public offerings, prompting criticism from firms already grappling with unpredictable demand and a lack of alternative funding sources.

India’s stock market has soared, touching record highs last month. It was Asia’s second-best performer last year, thanks largely to more than $16 billion of foreign investment.

Apr 13, 2015

Indian regulator under fire over IPO bottleneck

MUMBAI, April 14 (Reuters) – India’s market regulator, under
pressure to tighten scrutiny, is taking as long as a year to
approve initial public offerings, prompting criticism from firms
already grappling with unpredictable demand and a lack of
alternative funding sources.

India’s stock market has soared, touching record highs last
month. It was Asia’s second-best performer last year, thanks
largely to more than $16 billion of foreign investment.