The government has sought legal opinion on the issue related to foreign portfolio investors as FIIs continued to withdraw from the Indian capital markets, CNBC-TV18 has learned. The FPI's matter is under serious consideration and legal opinion has been sought now on how to deal with the issue.

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If you were to do carve out only for FPIs from the surcharge because the view is very clear, it cannot be done for everybody, so the super-rich will continue to fall under the surcharge bracket but if you were to do it specifically for the FPIs, what will be the modalities, legal opinion has been sought and that is where matter currently stand on trying to see how this can be executed.

It’s important to note that the finance bill has been passed by the parliament and so any change for FPIs will have to be done by way of an amendment and the parliament session ends on August 7. Therefore, it is likely if they want to move they will have to move very quickly with an amendment before August 7th, but if they don’t then if any change has to be brought in, it will have to be brought in by way of an open ordinance.

These are matters that are currently under discussion and deliberation and also there is a cabinet meeting this morning but a lot of attention is on the situation in Kashmir. So a lot of the government bandwidth is also occupied with other matters but what I was told this morning is that the carve out is under serious consideration. Legal opinion has been sought and modalities have to be worked out.

- Legal opinion has been sought on carve out for FPIs from surcharge

- Carve out for FPIs from surcharge under ‘serious consideration’

- Modalities with regards to carve out for FPIs from surcharge have to be worked out