The recent FPI sell off in the market has resulted in incidence of significant capital gains in India, experts say
The special exemption for such investments ends on March 31. Section 10(23FE) of the I-T act exempts dividend, interest and long-term capital gains accrued on infrastructure investments
Two thirds of the respondents expect emerging-market returns to match or beat those from developed markets over the next three years, with non-western SWFs more keen on the relative outperformance of developing assets, according to the survey conducted among 83 sovereign wealth funds and 57 central banks during the first quarter of 2024.
Government-backed funds from Norway, Singapore, Abu Dhabi, and Kuwait are attracted to the increasing profitability of companies like Zomato, Policybazaar, and Mamaearth, say experts.
In 2023, the assets under custody of sovereign wealth funds was Rs 3 lakh crore NSDL data showed. This increase shows that global investors are upping their bets on the India growth story.
Clarity is required for tax exemption claims by sovereign wealth funds and pension funds under section 10(23)(FE) of the Income Tax Act, 1961, especially for investments made between April 1,2024, and March 31, 2025
The study is based on the views of 142 chief investment officers, heads of asset classes, and senior portfolio strategists from 85 sovereign wealth funds and 57 central banks, collectively managing approximately $21 trillion in assets.
Around $700 million of the $1 billion funding round will be raised through equity, and one of the three Middle East-based sovereign funds is in advanced talks to lead the round
An exemption for money raised from foreign investors under the angel tax regime has been done away with in the Finance Bill, 2023.
Conglomerates such as IHC, and the public market desks of Abu Dhabi Investment Authority, ADQ, Qatar Investment Authority and Mubadala have been tapped for the Adani Enterprises FPO.
Sovereign investors, which now manage some $33 trillion in assets, have also seen a rapid rise in allocations to private markets, though this development might start to slow with fixed income back in favour, the Invesco Global Sovereign Asset Management Study said.
He emphasised that Indian companies are also investing in UAE in a big way across many sectors including energy.
The said Section permits a complete tax exemption to certain exclusive category of non-resident investors on their income streams such as dividends, interest and capital gains.
SWFs hold $29 billion of Assets Under Custody (AUC) as of December 2019
"In the last two days, the minister separately met global pension funds, sovereign wealth funds and other large funds from Australia, Canada, Singapore, Korea, Japan, Norway and the European Union and the US. All are looking at India for good investment opportunities," the government official added.
The government wants the investment vehicle to be private sector driven, with government providing a facilitating role, he said at the New Development Bank event here.
An SBI arm is believed to be in talks with private equity player Warburg Pincus and two Sovereign Wealth Funds from the Middle East to raise about USD 3 billion.
Global private equity players and sovereign wealth funds are likely to participate in the two-day summit, expected to begin on February 4. Key ministries like Finance, Roads, Highways and Transport, Oil and Gas, Urban Development and Railways will also engage in the function.
In an interview with CNBC-TV18, Mishra says global linkages are the biggest concerns for listed companies. Around 53 percent of the aggregate revenues of the top BSE 100 companies come from outside India, he says
The RBI said it was taking a "more liberal approach" for long-term foreign currency borrowing as well as for external commercial borrowings denominated in Indian rupees.
According to a survey by Bain & Company, the deal value in the private equity (PE) segment - including real estate, infrastructure and VC deals - rose to a seven-year high of USD 15.2 billion last year, registering a 28 percent spike from 2013.
Swiss brokerage Credit Suisse today said the robust foreign inflows into the country's debt and equities markets will halve to USD 18-20 billion next year on a slowdown in the sovereign wealth funds' (SWFs) play.
It has been a year since L&T has been attempting to divest stake in its infrastructure arm IDPL. While reports suggest the company is hoping to raise over USD 500 million through a possible stake sale, the management says determining valuations of assets in this economic scenario is taking longer than expected.
Abu Dhabi Investment Authority (ADIA) plans to invest about USD 200 million in Indian real estate, two sources said, underscoring a trend for large Gulf sovereign wealth funds to diversify away from traditional developed markets such as Europe.
The Indian economy is not in as a terrible a shape as the market fears, says Neelkanth Mishra, Head Equity Strategy India, Credit Suisse. In an interview with CNBC-TV18, Mishra said that most fund managers are extremely bearish on India, but the market was unlikely to see a “cataclysmic fallâ€.