FM says tax notice not targeted at FIIs

Sensex fell as investors fretted about the possibility of taxes on foreign portfolio investments.

Finance Minister Palaniappan Chidambaram said on Saturday a new tax notice distinguishing between stock market investors and traders was not aimed at foreign institutional investors.

HT Image

"The circular does not even mention FIIs," Chidambaram told reporters.

The benchmark BSE share index ended nearly 7 per cent down on Thursday, posting its biggest one-day fall in points terms, and fell another 4 per cent on Friday as investors fretted about the possibility of taxes on foreign portfolio investments.