New Delhi: The industry body Assocham on Tuesday
suggested that FIIs should be charged a tax of two per cent of
their money pumped into the stock market to prevent further
rise of the rupee and also an asset-bubble.
Foreign Institutional Investors have put in over Rs
71,900 crore so far this year in the country's bourses, the
highest ever investment made in rupee terms in a single year.
Assocham said the investments in Indian equities are
likely to exceed record levels of close to USD 18 billion in
the current fiscal.
"If this goes unchecked, neither the rupee appreciation
be stopped nor inflation put to check and India's exports
competitiveness would gradually fizzle out," it added.
Imposing the tax would help the RBI to manage rupee at
reasonable levels to safeguard and support Indian exporters,
hit hard by input cost and appreciating rupee, Assocham said.
The Rupee has appreciated over 5 per cent against the
US Dollar in the last six months.
Bureau Report
First Published: Tuesday, November 17, 2009, 20:15