Budget 2015: Simplify rules for investments from US-based NRIs, says Nilesh Sathe of LIC Nomura Mutual fund

NEW DELHI: The Modi government needs to think of different ways to boost mutual fund business in India, said Nilesh Sathe, MD & CEO, LIC Nomura Mutual fund. Investing in India is a bit tricky for US-based NRIs and Sathe calls for simplification of rules for NRI investments in Indian mutual fund schemes.

He also expects a separate regulator for mutual funds, that will not only see that the fund houses grow, but also help them get more investments. Like other Asian countries, India needs to make its equity market more accessible to overseas participants.

“SIP in equity, ETF and index-related funds should be made eligible under Section 80 CC and the exclusive limit should be given up to Rs 50,000,” Sathe said. “Provide some allowance to asset management companies for opening offices in tier II and III cities to promote mutual fund business,” he adds.

The upcoming budget will lay the ground for implementing the Goods and Services Tax (GST), which will generate higher revenue for both the Centre and State. Besides implementing GST, the budget will be a good opportunity for the government to reform PDS and PPP in infrastructure projects and take direct benefit transfer payment to end-users for all subsidies.

“We expect the fiscal deficit to be around 3.6% as against last year's projection of 4.1%. The revenue deficit may be much more healthier to enable the government to embark on capital expenditure in a big way and kick start growth.” said Sathe. Custom duty on crude oil of 5% may be restored back in the current budget to shore up more revenue, Sathe adds.