To bring clarity on issues raised by Budget proposals, SEBI will soon convene a meeting of foreign institutional investors (FIIs).
At a post-Budget interaction with industry today, Finance Minister P. Chidambaram said he would also go to the US, Canada and Japan in April-May to engage with investors there.
Different limits
One issue sure to figure at the SEBI-convened meeting will be the Budget proposal to adopt the international practice of treating investors holding 10 per cent or less in a company as an FII.
Investments over that threshold will be treated as Foreign Direct Investment.
This proposal has raised doubts among foreign investors if existing players will come under the new regime.
There is also no clarity on whether it would cover all sectors or only specified ones.
In his Budget speech, Chidambaram had said a committee would be set up to examine this issue and to work out the details.
Another issue is how the regime change will impact the tax liability of foreign investors.
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