SEBI backs removal of long-term capital gains tax for foreign investors: Report

Contributing sentiments towards policy:

55% : Brokerage firm Jefferies in a note earlier this week said any reduction in capital gains taxes could improve the market's attractiveness for foreign investors and support portfolio inflows.
52% : Investors currently pay long-term capital gains tax of 12.5% for securities held for more than a year and short-term capital gains tax of 20%, in addition to securities transaction taxes on trades and withholding taxes on dividends.
51% : SEBI has recommended the government remove the long-term capital gains (LTCG) tax imposed on foreign investors, two sources with direct knowledge of the matter said, as India looks to galvanise its underachieving equity markets.
51% : The Securities and Exchange Board of India (SEBI) has also proposed tax relief for domestic mutual fund investors, suggesting they be exempt from LTCG if they are selling existing holdings to invest in new ones, the sources said.
48% : "The proposals are aimed at reducing the upfront tax burden on foreign investors," one of the two sources said.
46% : Brokerage firm IIFL estimates scrapping capital gains tax could lift foreign investors' returns by 2.3 percentage points.
39% : To combat massive overseas outflows and revive lagging equities, the market regulator has proposed scrapping long-term capital gains taxes for foreign investors alongside rolling out tax relief for domestic mutual funds.

*Our bias meter rating uses data science including sentiment analysis, machine learning and our proprietary algorithm for determining biases in news articles. Bias scores are on a scale of -100% to 100% with higher negative scores being more liberal and higher positive scores being more conservative, and 0% being neutral. The rating is an independent analysis and is not affiliated nor sponsored by the news source or any other organization.