Foreign investors fret over Narendra Modi govt's surprise capital gains tax

Minutes after India's surprise announcement of a 10 per cent long-term capital gains tax on equities, Rakshit Sethi's inbox began filling with emails from worried foreign investors. Sethi, managing director at investment firm Fair Value Capital, could offer few words of comfort.

"There is no way to sugar coat it," he said. "This will have a direct impact." Even before a sharp sell-off in global markets at the start of this week, foreign investors had responded with dismay after Finance Minister Arun Jaitley.....

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