Mauritius Losses FII’s Top Spot


It seems all noise made about taxing investment from Mauritius is having an effect as the country fell to second position in terms of quantum of money being brought in by foreign investors into Indian markets.
United States has emerged as the country which accounted for the largest chunk of ‘assets under custody’ of foreign institutional investors investing in the Indian equity and debt markets at the end of 2013 with over Rs 4.37 lakh crore worth funds, as per SEBI data.
Mauritius had over Rs 3.31 lakh crore worth ‘assets under custody (AUC)’ of FIIs and their sub-accounts as on December 31, 2013.
In 2012 Mauritius was the leading country from which large foreign investments entered India with AUC of over Rs 3.51 lakh crore.
US was at second position in 2012 with Rs 3.42 lakh crore.
After US and Mauritius; biggest investment came from Singapore, Luxembourg, UK, UAE and Norway.
From last few years, investments from Mauritius have been on the radar of Indian enforcement agencies as black money became an important political issue in the country.
There have been allegation that black money is brought into the country through Mauritius route by setting up shell companies, a process called as “round tripping”.
Mauritius has been favoured country for investors who want to invest in India due to a favourable tax treaty India signed with the island nation over 30 years ago.
– asianage

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