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17 July 2026

Bill to replace FII tax exemption Ordinance

The topic involves a specific legislative bill replacing an ordinance, which is a standard mechanism for parliamentary procedure and fiscal policy implementation relevant to GS2 and GS3.

1 min read Day 3 of 3 1 questions 1 prelims

Notes

  • The Government has listed a Bill for the Monsoon Session of Parliament to replace an Ordinance issued in June.
  • The Ordinance provides tax exemptions to Foreign Institutional Investors (FIIs) and the Bank of International Settlements (BIS).
  • The exemption covers capital gains tax arising from the sale, exchange, or transfer of government securities.
  • The exemption also covers tax on interest earned from investments in government securities.
  • The objective is to provide legislative backing to the fiscal measures introduced via the Ordinance.

Part of a longer story

This is day 3 of 3 in Foreign Portfolio Investment in Indian debt markets, which has been running since 30 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Examine the role of fiscal incentives in attracting foreign capital into the Indian government securities market. How does the legislative replacement of ordinances ensure greater transparency and stability in the investment climate? 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00

Prelims

  1. The recent Ordinance mentioned in the context of FIIs and the Bank of International Settlements (BIS) primarily relates to which of the following?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-07-17/bill-to-replace-fii-tax-exemption-ordinance