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Mauritius issue begins to haunt foreign investors as FPIs pull out nearly $1 billion from Indian stocks

India and Mauritius have agreed to a protocol to alter a double taxation avoidance agreement (DTAA) stating that tax relief cannot be for the indirect benefit of residents of another country. As a result, all FPIs will have to examine whether they have enough commercial rationale to be based in Mauritius when the tax scrutiny happens. ....

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