On MAT, FPIs cut India play, take out `12k cr in May
Overseas investors have reduced their exposure to Indian capital markets amid taxation worries and have pulled out over Rs 12,000 crore from it so far this month.
During January to April, investments by Foreign Portfolio Investors (FPIs) totalled Rs 94,241 crore, but a month-on-month analysis shows the fund flows are witnessing a declining trend.
Foreign Portfolio Investors investments in January 2015 stood at Rs 33,688 crore, before dropping to Rs 24,564 crore (February), Rs 20,723 crore (March) and Rs 15,266 crore (April). Things got worse in May as FPIs have withdrawn an estimated Rs 12,256.21 crore so far this month, according to the latest data from depositories and stock exchanges.
The huge sell-off comes on apprehension that the government would impose a 20 per cent Minimum Alternate Tax (MAT) on profits earned by overseas investors.