SEBI Proposes Scrapping LTCG Tax for Foreign Investors
· Business · Times of India, LiveMint
The Securities and Exchange Board of India has requested the government to remove the long-term capital gains tax currently levied on foreign investors. This proposal aims to boost India's equity markets, which have underperformed compared to other emerging markets over the last two years. Foreign investors have withdrawn approximately $31 billion from Indian stocks so far this year, with many citing high investment costs as a primary concern. SEBI has also recommended tax relief for domestic mutual fund investors, specifically suggesting that transactions involving switches between schemes be exempt from LTCG tax. The final decision rests with the government ahead of the upcoming Union Budget in February.
Why it matters
Removing these taxes could lower the cost of investing in India, potentially reversing the trend of massive foreign fund outflows and supporting domestic market stability.
Read the original report — Times of India
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