Tax cuts for FIIs would be ‘asking govt to fund their under-performance’: Elara Capital MD & CEO
Harendra Kumar, MD of Elara Capital, argues against tax cuts for Foreign Institutional Investors (FIIs), stating that such measures would essentially subsidize poor performance. He suggests that current market complaints are driven by hedge funds rather than long-term international investors.
Why it matters
The discussion reflects ongoing tensions regarding tax policy, market speculation, and the role of foreign capital in the Indian stock market.
Dwindling stock market returns in Indian indices, especially for Foreign Institutional Investors (FIIs) should not determine tax policy changes, said Managing Director and CEO of Elara Capital Harendra Kumar.
Speaking to T he Hindu o n the sidelines of Elara’s annual conclave Ashwamedh, Mr. Kumar said that pushing for tax cuts for FIIs is “asking the government to fund their underperformance”.
“The FII amount is over the cost and rupee depreciation. They should make money post-tax. This problem was not there two years back, because they were making serious money,” he said further asking why they had not raised this two years back, when they were making returns.
Further, he said that it is not even international investors, but hedge funds and high frequency traders that are complaining about the taxation in India.
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