This year 2015 Mr jaitley presented a mixed bouque for Private Equity fund houses which contains basically:-
1.Simple rules for getting global capital pool.
2.Permanent Establishment exemption for PE funds for offshore setting up of funds.
3. Permanent Establishment exemption will leverage bigger relief to portfolio investors as compared to strategic capital .
Currently If a PE fund raises capital and incorporate entity offshore Fund income will be taxed in India at 40% just as Fund manager worked outside or team put efforts from outside India.
New rules Says to avail the benefits of New budget rules 2015 PE fund must not invest 20% of total fund project in single entity.
A new drawback arose after current rules that is Fund houses like KKR, Carlyle or Blackstone senior deck have to operate through India for foreign Funds offshore operations which will hurt investment opportunities in India Via PE fund houses.
State could be worse as issue of all above PE fund houses is its not good and conditions are onerous and imperceptible to carry buyouts or write large cheques formats like this way now.
But it some how given great opportunities to Domestic PE fund houses to operate from India to offshore as needless to think for them to work outside India setting up outside as they already in India.
A mandatory provision also stops global fund houses to operate in India without setting up in India is that a broad base of nvestor pool and each fund should have a minimum 25 members limited partners.
This provision will make raising funds much difficult in future amendment likely to be made but in future.
pooled investment funds will be expected in future .
Disclaimer:- This article is being written by CS GAURAV SHARMA and should not be produced,reproduced,copied,paste,modified or edited for training or business purposes or other eductaional purposes without asking permission from writer CS GAURAV SHARMA further if any part semi or full of article if used for personal use without prompt it will tantamount to act of theft.
1.Simple rules for getting global capital pool.
2.Permanent Establishment exemption for PE funds for offshore setting up of funds.
3. Permanent Establishment exemption will leverage bigger relief to portfolio investors as compared to strategic capital .
Currently If a PE fund raises capital and incorporate entity offshore Fund income will be taxed in India at 40% just as Fund manager worked outside or team put efforts from outside India.
New rules Says to avail the benefits of New budget rules 2015 PE fund must not invest 20% of total fund project in single entity.
A new drawback arose after current rules that is Fund houses like KKR, Carlyle or Blackstone senior deck have to operate through India for foreign Funds offshore operations which will hurt investment opportunities in India Via PE fund houses.
State could be worse as issue of all above PE fund houses is its not good and conditions are onerous and imperceptible to carry buyouts or write large cheques formats like this way now.
But it some how given great opportunities to Domestic PE fund houses to operate from India to offshore as needless to think for them to work outside India setting up outside as they already in India.
A mandatory provision also stops global fund houses to operate in India without setting up in India is that a broad base of nvestor pool and each fund should have a minimum 25 members limited partners.
This provision will make raising funds much difficult in future amendment likely to be made but in future.
pooled investment funds will be expected in future .
Disclaimer:- This article is being written by CS GAURAV SHARMA and should not be produced,reproduced,copied,paste,modified or edited for training or business purposes or other eductaional purposes without asking permission from writer CS GAURAV SHARMA further if any part semi or full of article if used for personal use without prompt it will tantamount to act of theft.
