INDIA MARKET LENS
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Sebi backs removal of LTCG tax for foreign investors: Report

SEBI is in focus in a mutual funds development.

· Economic Times Markets, ET Stocks, LiveMint Markets, Business Standard Mkts, Business Today Mkts

To boost foreign investment interest, India's Securities and Exchange Board has put forth a proposal to scrap long-term capital gains tax for foreign investors and extend tax relief to mutual fund investors. This move is designed to counteract the high capital gains taxes and transaction costs faced by foreign entities, aiming to enhance the overall attractiveness of India's equity market.

Fund flows and NAV moves show where domestic retail conviction is actually going, month after month.

Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.

  • With SEBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
  • A market-wide development: it reaches beyond any single stock.
  • Sectors in the story: Capital Goods & Engineering and Capital Markets.

Capital Goods & Engineering

1M -10.9% · 3M -5.3%

Capital Markets

1M -2.9% · 3M -6.3%

Sector moves are the average of the stocks we track in each sector.

Capital Goods & EngineeringCapital Markets