New Delhi, May 15 -- Market veteran Deepak Shenoy has backed reports that India may consider removing taxes on foreign institutional investors (FIIs) investing in Indian bonds, calling the move an important step toward making Indian debt markets more globally competitive and attracting long-term foreign capital.

In a detailed post on social media platform X, the Founder and CEO of Capitalmind argued that India's current tax treatment for foreign portfolio investors (FPIs) is significantly different from most major economies and creates friction for overseas investors allocating money to Indian debt markets.

"Foreign investors pay tax on all capital gains made in India. India is different from all major economies who follow residence bas...