A Master Limited Partnership (MLP) is a publicly traded limited partnership that combines the tax advantages of a private partnership with the liquidity of publicly listed securities. MLPs are most commonly found in the US energy sector — particularly in midstream oil and gas infrastructure such as pipelines, storage terminals, and processing plants — and are required by law to distribute most of their income to investors (unitholders) as quarterly distributions. MLPs offer attractive yields and pass-through taxation (avoiding corporate-level tax), making them popular income-generating instruments. While not directly listed on Indian exchanges, Indian investors with global portfolios or those using international investing platforms need to understand MLP structures for cross-border investment diversification and tax-efficient income generation.
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