Sebi Chief Tuhin Kanta Pandey’s Views on FPI Tax Laws and Policy Stability

No Alterations Needed for FPI Taxation Laws

Sebi chief Tuhin Kanta Pandey asserts that there is no requirement to change taxation laws for foreign portfolio investors (FPIs) in India. He underlines the fact that the country has offered double-digit returns in dollar terms and maintaining policy certainty is vital.

Prioritizing Trust, Transparency, and Technology

Pandey emphasizes Sebi’s focus on trust, transparency, and technology while discussing the necessity for balanced regulation. He declares that Sebi will persist in taking action against corporates for deceptive disclosures.

Robust Institutional Framework and Capital Market Infrastructure

The Sebi chief expresses confidence in India’s robust institutional framework and capital market infrastructure. He recognizes that the regulator has progressed under successive leadership and must continually confront challenges in a dynamic setting.

Adherence to Core Principles

Pandey reaffirms Sebi’s dedication to its four core principles – trust, transparency, teamwork, and technology. He underscores the significance of trust in regulatory decisions and interactions with market participants.

Policy Stability and Strong Capital Market Returns

Regarding taxation laws for FPIs, Pandey accentuates the value of policy stability. He notes that India’s capital markets have yielded strong returns, with MSCI India generating 11% annualized dollar returns over the past five years.

Market Risks and Geopolitical Uncertainties

Pandey acknowledges typical market risks along with escalated geopolitical and geo-economic uncertainties. He indicates that India is proactively engaging in bilateral trade agreements and FTAs to counteract potential impacts.

Transparency and Open Regulatory Practices

On transparency, Pandey states that Sebi is one of the most open regulators, engaging in extensive discussions and consultations prior to implementing regulations.