Narayana Murthy panel pitches for friendly tax regime for AIFs

Panel has suggested a suitable tax and regulatory framework for domiciliation of AIFs in IFSCs

The Securities and Exchange Board of India's (Sebi) expert panel has pitched for friendly tax regime and greater participation through the International Financial Services Centre (IFSC) for the alternative investment fund (AIF) industry.

The Alternative Investment Policy Advisory Committee (AIPAC), headed by Infosys' founder Narayana Murthy, has 24 other members, representing Sebi, Reserve Bank of India, government and the industry. The committee has proposed five per cent good and services tax (GST) rate for services availed by the industry. It has also called for more tax-breaks, pass-through status and offsetting of losses. Further, it devised a framework for AIFs to operate