Tax burden, currency hit weigh on FII flows; RBI delay offers limited relief: Rajesh Baheti

Rajesh Baheti, MD of Crosseas Capital Services, says foreign investor flows into India remain under pressure due to structural tax disadvantages, including capital gains taxation and currency-related losses. He adds that while regulators are curbing speculative activity, the lack of incentives for delivery-based investing and operational clarity continues to weigh on participation, with the RBI’s recent norm deferral offering only limited, short-term relief.