50% of foreign money in mkts from ‘tax havens’
No Cause For Concern: Pranab Pradeep Thakur TNN New Delhi: Nearly half of the Rs 70,000 crore in offshore investment that’s come into Indian bourses this fiscal, till October, is from alleged tax havens such as Mauritius, Hong Kong and Luxembourg — the three together contributing almost Rs 25,000 crore of the net inflow from foreign institutional investors. Significant omissions from this list are FIIs from Singapore and Switzerland, two countries that had figured among the top-five with highest investments in Indian equities during the economic slowdown of 2008. FIIs from the two countries had put in over Rs 15,000 crore last year. The government says there is no cause for concern on the strong FII inflow into stock markets, with finance minister Pranab Mukherjee stating that regulators are keeping a close watch and will act if it’s found alarming. Till October 2009, FII-held equities totalled over $160 billion. A finance ministry statement said the highest investments came from US-ba...