SBI Research urges tax review to curb FII selling in equities
In short
SBI Research says the government should think about changing equity taxes to reduce selling by foreign investors. It suggests a 2-3 year holding period and removing long-term capital gains tax on equity.
This matters because the idea is aimed at supporting the stock market and keeping money invested longer. The government’s response is not stated in the available reporting.
What the reporting says
SBI Research says the government should consider extending the holding period to 2-3 years and abolishing long-term capital gains tax on equity to help anchor hot money in the stock market. The publisher summary frames the suggestion as a response to foreign investor selling, but it does not say the finance ministry has agreed or announced any change. The immediate consequence is policy debate, while any tax decision remains unknown.
Why it matters
SBI Research is reported to have urged the government to extend the holding period for equity to 2-3 years and abolish long-term capital gains tax in order to anchor hot money flows and curb FII selling. The source presents this as a recommendation, not a policy decision. Its relevance is to taxation and market flows, but no official response is stated.