Constraints at present vis a vis flow of FPI–[1] LTCGs 12.5% & STCG 20% besides applicable surcharge and cess [2] India levies both STT and capital gains tax [3] Double taxation -typically taxes paid in India are often difficult to claim as foreign tax credit at home [4] Added to this rupee depreciation — all this reduces post tax dollar returns — Article by Mr Janak Raj–Courtesy BS