SEBI clarifies banks and brokers face no offshore fund tax liability easing foreign fund launches

The risk for local brokers just vanished

SEBI has clarified that Indian banks and brokers will not be held liable for taxes owed by offshore funds, as two sources familiar with the development said. The move removes a key compliance hurdle that had slowed fund launches after earlier fears that local representatives could face penalties for clients tax demands. The clarification is expected to unblock new foreign investments.