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Mauritius funds eligible for Category-I status, move could boost investment

Nearly 80 per cent of FPIs coming from Mauritius are currently classified as Category-II

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All these investors may be shifted to Category I on payment of the requisite fees for the license

2 min read Last Updated : Apr 14 2020 | 12:26 AM IST

The government has specified foreign portfolio investors (FPIs) from Mauritius as eligible for taking up Category-I licence — a move that could boost investment from the region.

Nearly 80 per cent of FPIs coming from Mauritius are currently classified as Category-II.

According to experts, all these investors may be shifted to Category I on payment of the requisite fees for the license. Despite its treaty amendment with India, Mauritius remains the second-largest source of FPI money and the move could boost investment from there.

“The taxation overhang on funds investing through Mauritius is gone because no indirect transfer is applicable to Category 1.

Topics : FATF FPIs Foreign portfolio investor Sebi

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