The Asia Securities Industry and Financial Markets Association (Asifma), the industry body that represents foreign institutional investors (FIIs) investing in India, has hit out at the draft guidelines on the General Anti-Avoidance Rules (GAAR), which are based on examples. The draft guidelines on GAAR released by the finance ministry include some 20-odd illustrations explaining how GAAR will apply to these practical situations. But, according to Asifma, these examples are not exhaustive and cannot fully cover the various financial structures, leading to uncertainty. It also urged the government to fully exempt portfolio investments from the GAAR provisions by issuing a notification to this effect.

><table width='100%' border=0 cellspacing=0><tr><td style='FONT-FAMILY: Arial; FONT-SIZE: 18px; FONT-WEIGHT: bold; COLOR: #0253B7;'>Foreign investors body against example-based GAAR draft</td></tr><tr><tr><td style='FONT-FAMILY: Arial; FONT-SIZE: 11px; '>Says this leaves the draft 

Foreign investors body against example-based GAAR draft

Says this leaves the draft too open for interpretation'

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