Edelweiss Chairman Proposes Tax Cuts to Attract Foreign Investors
Rashesh Shah urges the Indian government to remove capital gains taxes for foreign investors while preparing Edelweiss's asset management arm for an IPO.
The Chairman and Managing Director of Edelweiss Financial Services, Rashesh Shah, expressed optimism about the return of foreign investor interest in Indian equity markets. He attributed this potential growth to a resilient economy and improving corporate earnings, though he warned that volatile oil prices and a lack of core AI-driven assets remain risks.
To sustain foreign interest, Shah argued that the Indian government must reduce regulatory complexity. He specifically suggested that "removing capital gains tax for foreigners might be an easier answer" to attract international capital. He noted that strong domestic mutual fund inflows currently provide a necessary floor for the market.
In addition to his policy recommendations, Shah announced that Edelweiss is preparing its asset management company for an initial public offering within the next 18 to 24 months. This move is part of a larger corporate strategy to list the firm's underlying businesses over the next two to four years.
