Foreign portfolio investment (FPI) in Indian equities has undergone a structural shift as institutional capital from the United States and Europe replaces traditional inflows from offshore tax havens. This transition marks a significant departure from historical dependence on low-tax jurisdictions, reflecting a maturation of the investor base in the Indian market. The appeal of Mauritius as a primary investment route has diminished following the implementation of stringent regulatory frameworks. Key measures, including the principal purpose test (PPT) and enhanced beneficial ownership disclosure requirements, have curtailed the tax advantages previously associated with these entities. The regulatory tightening led to substantial equity withdrawals from Mauritius-based funds throughout 2025. In response to increased scrutiny and tighter tax norms, global asset managers are increasingly opting for direct investment routes or jurisdictions that offer greater transparency and compliance alignment with international standards.