On the other hand, if exemption is retained, FPIs will still have the uncertainty concern of not knowing if it satisfies GAAR from April 1.

The income-tax department issued notices to FPIs asking them to pay MAT for prior years, prompting worries about an arbitrary tax regime.

The regulator has said that the fear of MAT has rattled many offshore investors and must be dispelled at the earliest.

On Monday, some portfolio investors discussed the uncertainty caused by the MAT issue during a conference call organised by Deloitte.