Hedge fund tax rule sought by SEBI would boost demand Sebi is seeking “unit-based” taxation for products broadly classified as hedge funds as part of its proposals for the union budget , according to people in the know India’s market regulator has recommended new tax rules for alternative investment funds, people familiar with the matter said, a move that would boost the country’s fledgling hedge fund industry The Securities and Exchange Board of India (Sebi) is seeking “unit-based” taxation for products broadly classified as hedge funds as part of its proposals for the union budget due on 1 February, said the people, who asked not to be identified because the matter is confidential If approved, the designation would reduce fund managers’ administrative burdens and make the country’s equity hedge-fund investors eligible for capital-gains tax exemptions after one year, moving the rules more in line with those for mutual funds. Unfavourable tax treatment has been a key barrier to...