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Banks warn over latest India tax scare

Asian investment banks fear that a tax provision in India's incoming finance bill will lead foreign investors to withdraw from the country's stock markets and have written directly to Pranab Mukherjee, finance minister, urging him to intervene. The letter, sent on Wednesday by the trade organisation for Asian investment banks and its global sister body, says that provisions in the bill could be used to tax investments by Foreign Institutional Investors (FIIs) in Indian shares.

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