The over exuberance over draft norms on GAAR (General Anti Avoidance Rules) released late Thursday may die down with the Prime Minister's Office clarifying that these are just draft and would need to be finalised after feedback from stakeholders.
"The GAAR guidelines that have been put up on the government website from the official level of the Finance Ministry and shared with some stakeholders are only draft guidelines and have been put out for receiving wide-ranging feedback and for discussion purposes only.
These have not been seen by the Prime Minister and will be finalised with the approval of the Prime Minister, who holds the Finance portfolio, only after considering the feedback received," the PMO statement said.
However, the late Thursday announcement of GAAR draft guidelines saw equity markets rising sharply with the Sensex spurting by 439 points on frenzied buying. The rise came on the back of reports that the draft GAAR may not tax P-notes, an instrument widely used by Foreign Institutional Investors to invest in Indian equities.