05 Feb 2026 | 3 Mins Read
India's arbitrage trade hit by tax hike
Flipitmoney
India raises taxes on equity derivatives, threatening a $36 billion asset sector. Arbitrage funds, holding 38% more assets under management from last year, will face higher costs, potentially denting returns 25-35 basis points. Fund managers adapt by exiting capital, widening spreads to offset the impact, but still expect lower returns.