SEBI is reported to be recommending changes to India’s capital gains taxes, including scrapping long-term capital gains (LTCG) tax for foreign equity investors, ahead of the Union Budget. The move is described as advisory and not binding, with the government making the final decision.
The proposals are framed as a way to address weak equity-market performance and foreign capital outflows. Multiple outlets say SEBI is also considering or proposing relief for domestic investors in the mutual fund space, alongside broader efforts to reduce what overseas investors see as relatively high investment costs. One report attributes additional context to recent market underperformance versus emerging-market peers.
Across coverage, the common thread is investor-attractiveness: outlets link the tax proposal to improving flows and supporting India’s equity markets. Differences mainly relate to how much background and figures are included, rather than the core policy direction described.
