Jul 12, 2019
Question of trust: Government seeks info on FPI origins from Sebi
The government has sought information from the Securities and Exchange Board of India (Sebi) about the origins of those foreign portfolio investors (FPIs) that use the trust structure and the assets that they manage, said a person familiar with the development. It also asked for data on the tax liability of each of the structures employed by FPIs — trusts, companies and limited liability partnerships (LLPs). Sebi, which regulates FPIs, had asked custodians to provide the information, said the person cited above.
“Custodians have provided all the information that was sought from them except for the tax part, which they said they don’t have,” said the official. Last week’s budget had proposed an increase in the surcharge on high-income earning foreign individuals and associations of persons (AoPs). A large number of FPIs in India will be impacted as they are structured either as trusts or AoPs.