MC EXCLUSIVE SEBI chief on Tiger Global judgement, ‘whenever these kinds of issues are decided, there will be concerns’

SEBI to examine concerns on solution oriented MF schemes, and issues of taxation in Life cycle fund schemes

• SEBI chief says Tiger Global ruling triggers investor concerns
• Supreme Court ruling could affect foreign funds in India's F&O market
• Government urged to engage with foreign investors

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Market regulator Securities and Exchange Board of India (SEBI) Chairman, Tuhin Kanta Pandey, responding to concerns around the Supreme Court ruling in the Tiger Global tax case, acknowledged that such landmark decisions naturally trigger investor anxiety. He noted that initial concerns often relate to the implications of the apex court’s interpretation for other transactions, especially since the issue was earlier seen as largely settled. Pandey said, ‘whenever these kinds of issues are decided, there will be concerns, how the concerns are then processed because initial concerns about the determination by the apex court and then what implications it might have for some of the transactions”.

He said it is for the government to engage with foreign investors and address concerns through dialogue and policy clarity. He said it was a quite settled issue earlier, and CBDT, had taken out their line on this. Subsequently, various treaties have been modified.

Moneycontrol had previously reported that, Tiger Global ruling may affect foreign funds in India’s F&O market as several foreign portfolio investors (FPIs) created Mauritius and Singapore structures to invest into India since both the jurisdictions continue to offer zero tax on gains made through derivatives trading in India. While the main trading desks of these companies are often in Europe, they maintain skeletal staff in Mauritius and Singapore. FPIs contribute about 15 percent of the total derivative market volumes in India.

SEBI has been trying to ensure greater participation of foreign funds in the market and has taken several measures including easier on boarding, Single window framework (SWAGAT-FI), relaxed disclosure norms on beneficial ownership, separate category and easier compliance for FPIs investing in Government securities. Recently introduced, netting mechanism for reducing funding cost, integrating digital signature feature in application etc to smoothen the operation issues.

What is Tiger Global case

In a landmark January 2026 ruling, the Supreme Court held that Tiger Global must pay capital gains tax in India on its 2018 sale of a stake in Flipkart to Walmart. The Court ruled that Mauritius-based entities used in the deal lacked commercial substance and constituted an impermissible avoidance arrangement under GAAR. It denied treaty benefits under the India-Mauritius DTAA and clarified that a Tax Residency Certificate is not conclusive. The verdict emphasizes substance over form, reinforcing GAAR’s primacy and reshaping tax planning for foreign investors in India.

Also read: Full interview of SEBI Chairman Tuhin Kanta Pandey