SBI Research calls for abolition of LTCG tax on equities to boost foreign capital inflows
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- ✓SBI Research called for the abolition of long-term capital gains tax on equities to boost foreign capital inflows.
- ✓The report said, "The Government must seriously look into anchoring hot money flows into the equity segment by extending the holding period to say 2-3 years and abolishing the long-term capital gains tax."
Story at a Glance
- Category
- MARKET
- Reported By
- Economic Times
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
According to SBI Research, removing the long-term capital gains tax on equities could revitalize investment levels. The report emphasizes extending the holding period to two to three years as a strategy to boost investor morale. Faced with foreign portfolio outflows, the need for policy reforms is clear.
New Delhi: The State Bank of India (SBI) Research has called for the abolition of long-term capital gains (LTCG) tax on equities and an extended holding period of two to three years to attract capital inflows and improve investor sentiment amid sustained foreign portfolio investor (FPI) outflows from Indian equity markets.
In its latest Ecowrap report, SBI Research highlighted the need for structural measures by the government to strengthen capital inflows, stating that monetary and foreign exchange interventions by the Reserve Bank of India (RBI) alone may not be sufficient to address the challenges facing the rupee.
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