SBI Research backs scrapping LTCG tax on equities
In short
SBI Research has called for removing the long-term capital gains tax on equities. The report also suggested a holding period of two to three years and said foreign portfolio outflows are a concern.
This could support investor sentiment and bring in more foreign money if acted on. It is not stated whether the government will change the tax rule.
What the reporting says
SBI Research called for abolishing the long-term capital gains tax on equities to lift foreign capital inflows, according to a publisher-supplied summary. The report also suggested extending the holding period to two to three years and said foreign portfolio outflows make policy reform necessary. The immediate effect is not stated, and the proposal has not been reported as adopted.
Why it matters
SBI Research called for abolishing the long-term capital gains tax on equities, with the report also suggesting a two- to three-year holding period. The summary links the idea to foreign portfolio outflows and weaker investment levels. The reporting does not say whether policymakers will act, or how quickly any tax change could affect equity inflows, investor sentiment, or market activity.