$30 billion wiped off stock in 3 sessions as doubts on higher tax lingers

It’s an old saw of India’s budget documents -- the devil lies in details of the fine print.

A higher surcharge on wealthy Indians in the budget has spooked non-resident and overseas funds enough to erase Rs 2.3 trillion ($30 billion) in market value from companies in the S&P BSE Sensex over the past three sessions.

The reason: the realisation that the new tax rate applies not just to the super rich but also to trusts -- a structure of choice for a large number of foreign funds that invest in the nation.

The proposal “seems to have inadvertently” dragged foreign portfolio investors