Mid and small cap shares plunge

Stocks of mid and small-cap companies with investments from Mauritius fell sharply on concerns that the government may renegotiate its tax avoidance treaty with the island country,which could lead to lesser incentives to invest in the country via the route,several dealers said. India and Mauritius are expected to review the existing Double Taxation Avoidance Agreement DTAA soon,a senior finance ministry official said,but declined to elaborate on the time-frame. At 11.42 a.m.,the small-cap index of the BSE was down 2.54 per cent while mid-cap index was down 2.34 per cent,underperforming the benchmark index ,which was down 1.33 per cent.