FPIs pull out Rs 10,000-cr from Indian mkts in 4 sessions

Overseas investors have pulled out nearly Rs 10,000 crore from the Indian capital markets in the last four trading sessions amid taxation worries, after infusing huge funds in the first three months of 2015.
Foreign Portfolio Investors (FPIs) have withdrawn an estimated Rs 9,170 crore so far in May, as per the latest data from depositories and stock exchanges.
In April, investments by FPI had hit four-month low of a little over Rs 15,000 crore. Prior to that, FPIs had made a net investment of Rs 78,975 crore during January-March period.
The huge sell-off comes on apprehensions that the government would impose a 20 per cent minimum alternate tax (MAT) on profits earned by overseas investors.

The income tax department has sent notices to 68 foreign investors for payment of dues totalling Rs 602.83 crore towards MAT.
In a move to soothe frayed nerves, Finance Minister Arun Jaitley, last week, had offered tax relief to foreign investors, exempting income from securities transactions, royalties and technical service from MAT.
Since January 2015, overseas investors have invested a net amount of Rs 86,500 crore (USD 13.96 billion) in the Indian capital markets (equity and debt).