This year, the budget exempted taxes on income generated from trades in P-notes by a foreign investor in IFSC, GIFT City. However, the opaque structure of these instruments has made regulators uncomfortable several times.
Gagandeep Sood - Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs, in accepting offshore derivative instruments (such as PNs) as legitimate contracts for growing economic activity in the GIFT City International Financial Services Centre (IFSC) has brought PNs into even more prominence considering that income distribution on PNs is now tax-exempt,