Govt's push to attract offshore fund managers fails to take off

In a bid to simplify this structure, the government had amended Section 9 of the Income-Tax Act underlying 13 conditions

Overseas funds are not showing any enthusiasm in relocating their fund managers to India despite a relaxed regulatory regime and several incentives provided by the government.

According to experts, tough eligibility conditions and a high compliance burden were acting as impediments. Since the beginning, all major foreign portfolio investors (FPIs) were wary of having their fund managers located in India as they would then become a tax resident here and hence, the money being managed would be subjected to multiple taxes. Also, the fund cannot avail any treaty benefits based on the place of incorporation.

In a bid to simplify this structure,