India Plans to Exempt Some Euroclear Bond Deals from Tax, Sources Say

India is considering giving some tax exemption to foreign investors settling sovereign bond purchases on Euroclear to speed up the inclusion of its debt in global indexes, according to people with knowledge of the matter.

Authorities are looking at a proposal to exempt overseas investors from capital gains tax, the people said, asking not to be identified before a final decision is taken. Policymakers are still looking at how transactions involving a resident would be treated, they said.