Mumbai, July 12 (IANS) Foreign Institutional Investors (FIIs) have pulled out nearly Rs 3,000 crore after the Budget proposed a higher surcharge on the super-rich impacting most FPIs.

In just 6 sessions since the Union Budget was proposed, FIIs offloaded Rs 2,937.53 crore worth of shares. Institutional investors play a dominant role in day-to-day market movement in India.

The Budget last Friday raised surcharge on the super-rich. Those with an annual income of between Rs 2 crore and Rs 5 crore would be levied a surcharge of 25 per cent from 15 per cent previously.

For those earning Rs 5 crore or more annually, the surcharge has been increased from 15 per cent to 37 per cent. With this, the effective tax rate will go up to 39 per cent for those in the Rs 2-5 crore income slab and 42.74 per cent for for those in Rs 5 crore and above group.

Most FPIs earn more than Rs 5 crore in a year and hence would come under the highest income tax bracket. They generally route their investments through trusts and body of individuals in the country's capital markets.

--IANS ravi/sn/prs