Taxes on foreign institutional investors (FIIs) pertaining to prior years are likely to hurt sentiment, CLSA said.
India issued fresh tax notice to Vodafone, according to a report.
Investment bank CLSA said, “notices received by funds largely based outside of treaty countries such as Mauritius, Singapore & Netherlands. However, it's difficult to rule out possibility of notices to Mauritius funds.”
According to Deloitte, investment entities incorporated as 'companies' will only be impacted and if current issue escalates, investor sentiment could get hurt again, the investment bank adds.