FPIs Nearly $1 Billion Selloff May Be Due To Tweak In Mauritius Tax Deal
This is the third-largest selling by overseas investors, after the Jan. 17 and 18 sell-off.
Overseas investors turned net sellers of Indian equities on Friday. Foreign portfolio investors offloaded stocks worth Rs 8,027 crore (around $1 billion), according to provisional data from the National Stock Exchange.
This is the third-largest selling by overseas investors, after the Jan. 17 and 18 sell-off this year.
This comes after India and Mauritius amended a tax deal that will lead to closer scrutiny of investments coming in from the island nation. However, the Income Tax Department has clarified in a post on social media platform X (formerly Twitter) that the India Mauritius DTAA Amendment is yet to be ratified and notified under Section 90 of the Income Tax Act. Hence, the concerns and queries are premature, and responses will be issued when the protocol is made effective, it said.
Domestic institutional investors remained net buyers and mopped up equities worth Rs 6,341.5 crore, the NSE data showed.
Foreign institutions have been net buyers of Rs 24,240 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated till the previous trading day.
The NSE Nifty 50 closed 234.40 points, or 1.03%, lower at 22,519.40, and the BSE S&P Sensex declined 793.25 points, or 1.06%, to end at 74,244.90.
