Major FPIs shift base after new tax treaties

More than 50 overseas investors moving to tax-friendly European nations

India’s new tax regime has triggered an exodus of funds from Mauritius and Singapore to tax-friendly jurisdictions in the Eurozone, including France and the Netherlands.

According to sources, more than 50 foreign portfolio investors (FPIs), including well-known names like JPMorgan, Morgan Stanley and Sweden’s SKB, are in the process of shifting from erstwhile tax havens to newer, friendly jurisdictions like the Netherlands and France.

The move comes after the government renegotiated tax arrangements with Mauritius and Singapore. Until the last financial year (FY17), all investments made through these countries were exempt from the short-term capital gains tax. Starting April 1,