Tax situs of shares clarified: investments through registered foreign portfolio investors excluded from deemed India situs for non-residents. The Bill inserts a clarificatory Explanation excluding from the deeming rule an asset or capital asset held by a non-resident by way of investment, directly or indirectly, in a Foreign Institutional Investor registered as Category I or Category II foreign portfolio investor under applicable securities regulations, thereby preventing such holdings from being treated as situated in India for the purposes of the deeming provision.