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Foreign investors fret over Narendra Modi govt's surprise capital gains tax

The rollout timing could also not have been worse as global markets have tumbled amid worries of higher inflation

Reuters  |  Mumbai 

Minutes after India's surprise announcement of a 10 per cent long-term capital gains tax on equities, Rakshit Sethi's inbox began filling with emails from worried foreign investors. Sethi, managing director at investment firm Fair Value Capital, could offer few words of comfort. "There is no way to sugar coat it," he said. "This will have a direct impact." Even before a sharp sell-off in global markets at the start of this week, foreign investors had responded with dismay after Finance Minister Arun Jaitley said on Thursday that India would tax capital ...

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First Published: Tue, February 06 2018. 19:54 IST