GAAR is the word which is haunting the foreign institutional investors for past few days, the full form of GAAR is general anti avoidance rules. According to it FII who are making profit from stock markets will be taxed and it may also be done retrospectively which is the reason why foreign players are extremely cautious and are not in a hurry to invest into the secondary equity markets. Clarity on General anti avoidance rules provisions would certainly be better for stock markets because for past 1 month it has been a big overhang on equities. 7th may will tell us whether GAAR provisions are good or bad for foreign investors and also for equities.
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good elaborarte.