General Anti-Avoidance Rules or GAAR meaning or GAAR rules need to be understood to visualise the impact on the mind of FIIS. No doubt Indian markets are suffering the GAAR impact as Foreign Institutional Investors (FII) are running away from India due to financial policies which can be considered retroactive. Click on the given link to understand the GAAR Meaning & Gaar rules.
Have a look at below stats to arrive at this conclusion:
- FIIs invested Rs 43,951 crore in the first three months of 2012.
- FIIs were net sellers to the tune of Rs 1,109 crore in the month of April 2012.
It is high time that Indian govt wakes up to the reality and have their policies clear once and for all to avoid sending mixed or wrong signals to Fiis as we desperately need their money.
