The government may explore targeted measures in the upcoming Union Budget for FY27 to boost foreign portfolio inflows into Indian equities and stabilise markets. The steps may include specific tax concessions and calibrated easing of some macro prudential norms, where they have proven to be redundant barriers to higher capital inflows into the country, according to people privy to the discussions on the matter. The move is in the wake of foreign portfolio investors (FPIs) pulling out $19 billion from Indian equities in 2025, even as domestic savings, the key source of capital creation, are at a multi-decade low of around 30% of the GDP. Policymakers have also noticed that FPIs continue to grossly underutilise the available investment limits in many segments of the market like corporate debt. One of the proposals being actively considered is to give tax-free status for listed equity investments by long-term institutional investors such as pension funds, and endowment funds which typically enjoy tax exemption in their home jurisdictions. To make compliance process and access easier for FPIs, on December 1, the market regulator announced streamlined FPI and Foreign Venture Capital Investor (FVCI) regulations under a single window framework – SWAGAT-F. The facility is slated to come into full force 180 days from the date of notification. Moreover, last week, Sebi issued a notification facilitating seamless digital signature certificates for FPIs. (ICE NEW DELHI)

Fonte notizia: Financial Express