Lower taxes may help home-grown hedge funds attract corporate money

An additional layer of taxes has been removed for companies opting to come under the new corporation regime

The recent cut in corporation tax rates could help open a door to more capital for the beleaguered domestic hedge fund industry.

Companies under the minimum alternate tax (MAT) regime earlier had to pay a tax on gains on investments in such hedge funds. Those shifting to the lower non-MAT regime would no longer have to pay this additional tax on gains through investment in such funds, potentially making it a more attractive route for corporate capital, according to experts.

“The new tax regime has removed the MAT hurdle for companies that would have invested in category-III AIFs (alternative investment