Prime Minister Manmohan Singh has spurt the finance ministry into action to calm investors, who have expressed serious concerns over the regulatory changes in the country.

The finance ministry said in its draft guidelines that General Anti Avoidance Rules will come into effect from April 1, 2013. The draft guidelines have also said that only those that foreign institutional investors will come under GAAR, who have opted for dual taxation avoidance agreements.

Firms who have nto opted for any treaty benefits and are paying taxes normally in the country will not come under the GAAR framework, the ministry clarified to address concerns and clear the air over the proposed changes. The guidelines also said that non-resident investors of foreign institutional investors or FIIs will be exempt from the GAAR.

Prime Minister Manmohan Singh has taken charge of the finance ministry until a new finance minister is appointed. The Prime minister might hold the portfolio until the next Parliament session and will take steps to boost the slowing economic growth in the country and boost investor confidence.