The government has asked the market regulator Sebi to provide information on the origins of those foreign portfolio investors (FPI) that use the trust structure and the assets that they manage, The Economic Times reported citing a person familiar with the development.

Share Market Live

NSE

The Sebi, which regulates FPIs, has also asked the custodians to provide the tax liability details of trusts, companies and limited liability partnerships (LLPs) - employed by FPIs, the report said.

“Custodians have provided all the information that was sought from them except for the tax part, which they said they don’t have,” the official told ET.

In her maiden budget last week, finance minister Nirmala Sitharaman proposed an increase in the surcharge on high-income earning foreign individuals and associations of persons (AoPs).

A significant number of FPIs in India are trust-based - about 40 percent, while 60 percent of them use corporate structure, according to the data provided to the government.