He has described India govt decision to have retroactive taxation as a blatant blunder for India economy. FIIs and foreign investors are worried on two Indian provisions seeking to tax indirect investments and combat tax evasion. He is positive on China despite prevailing political situation in the country. The loss of India is going to be gain in China as he holds maximum investment in PetroChina. He is very optimistic on Brazil and one can check Mark Mobius Emerging Market portfolio Trend by clicking the given link.
Tax indirect investments
Tax Indirect investments provides power to retroactively tax the indirect transfer of assets.
Combat tax evasion
The second targets tax evaders via the General Anti-Avoidance Rule ( GAAR), putting the onus on investors registered in countries with special tax exemptions with India to prove they do not intend to explicitly avoid tax.
How this retroactive taxation is going to affect foreign investors and FIIS?
As we know that Mar end saw Macquarie’s Asia hedge fund exiting its short positions in Indian single stock futures in response to the controversial proposed tax rules, fearing that it would lower their investment returns.