India Scraps Capital Gains Tax for FPIs Investing in Government Bonds

On FPI investments under General Route, it has been decided to remove the three restrictions, short-term investment limit, concentration limit and the security-wise limit for investments by Foreign Portfolio Investors (FPIs) in Government securities, while retaining the overall quantitative investment limit of 6 per cent of the outstanding stock of the Central Government securities and 2 per cent of the State Government securities (SGSs). The sub-categories of investment limits, ‘general’ and ‘long-term’ will also be merged into a single limit for investment in Government securities and SGSs.

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