Foreigner wants to invest: best option?

dear yashsr,

any individual making a long term(i.e. for more than 12 months) investment in india in equity or equity oriented mutual fund, any capital gain arising on transfer of such capial asset will be exempt from tax and only be subject to STT(i.e. 0.125% of tax)

further he can invest in FCCBS. if he invest in FCCB and transfer such FCCB to a non resident of india then he will not be subject to tax.

cheers

ganesh agarwala