FM Arun Jaitley announced a number of steps in the Union budget to draw funds from foreign portfolio investors (FPIs). The proposals include an exemption from the provisions of indirect transfer tax for category I & II FPIs. The indirect tax provisions will still apply to category-III FPIs like corporate bodies, trusts and family offices. Category-I FPIs include foreign central banks, sovereign wealth funds and government agencies. The category-II mutual funds and banks. However, hedge funds, individuals and other high-risk foreign investors will not get this relief.