Singapore‑Listed ETF Provides Tax‑Friendly Access to Indian Shares

What Happened

UTI Asset Management is launching a Singapore‑based feeder ETF that will buy units of an existing Indian Nifty 50 ETF, allowing foreign investors to claim a tax exemption under the India‑Singapore treaty. ## Why It Matters By removing the 12.5 % long‑term and 20 % short‑term capital‑gains taxes, the fund lowers the cost of holding Indian shares for overseas money managers. This makes India’s market more attractive compared with other emerging economies that already offer tax‑friendly routes, potentially drawing more foreign capital at a time when high taxes and rich valuations are deterring investors. ## What Happens Next The fund will start trading on the SGX on 12 Nov, with an initial price of $1 per share. Investors will watch whether Indian regulators accept the treaty exemption; a rejection could force the fund to pay the usual taxes, reducing its appeal. If the structure works, other managers may launch similar products, further easing foreign access to Indian equities.