EQUITY TAXATION IN INDIA
Investors in other markets would be envious of India multiples: Rich Handler, chief executive of Jefferies
Jefferies CEO Rich Handler believes Indian equities remain reasonably valued despite the market correction and says easing long-term capital gains taxes could attract foreign investors. He sees opportunities in India's AI and data centre sectors, argues that global capital outflows reflect external pressures, and believes concerns about an AI bubble warrant a healthy pause rather than alarm.
Can the government remove LTCG on mutual funds in Budget 2027? Here’s what experts say
SEBI has repotedly proposed tax relief for domestic mutual fund investors ahead of Budget 2027. The proposal aims to exempt investors from long-term capital gains tax when switching investments. Financial experts note that removing this tax could increase investor interest, although it may impact government revenues.
Scrap, cut or tweak? Centre weighs options on LTCG, STT to stem foreign investor exodus
The Centre is weighing proposals to scrap or lower long-term capital gains tax and recalibrate securities transaction tax as it seeks to address foreign investor outflows. Market participants have favoured scrapping LTCG on equities and selectively raising STT on options, while regulators are understood to support removing LTCG to attract overseas capital.
Fairness, churn, and India's rise: India has lifted millions out of poverty, but the next big challenge is helping people climb further
India's poverty rate has fallen sharply, with nearly 496 million people moving above the World Bank's lower-middle-income poverty line between 2011-12 and 2023-24. However, the next challenge is to expand economic mobility, improve wages and create opportunities. The article examines why growth, fair access and social mobility matter more than focusing on inequality alone.
FICCI makes recommendations to FM ahead of Budget 2027-28, highlights LTCG exemption, TDS relief and faster tax appeals
FICCI has recommended the restoration of long-term capital gains tax exemption on listed shares in Budget 2027-28. The organization highlighted concerns regarding the withdrawal of foreign portfolio investments and the impact of capital gains tax. Additionally, it requested the government to implement lighter TDS rules and resolve backlog issues in tax appeals. FICCI emphasized the need for measures to provide certainty to investors over the long term.
Firm It Up, Don't Junk It: India needs a more predictable capital gains tax regime to deepen equity markets
India's capital markets have seen significant changes, with millions of households participating in equity investing. The current tax framework needs to evolve to encourage better investment behavior among participants. A predictable and neutral tax system can foster deeper domestic participation in capital markets. Implementing a graduated tax rate could motivate investors to hold their investments longer. Adjusting the capital gains tax structure could align taxation with economic returns for investors.
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ETMarkets Smart Talk| Gold, silver or copper? Tata MF fund manager suggests a 50:30:20 commodity allocation: Tapan Patel
In this edition of ETMarkets Smart Talk, we speak with Tapan Patel, Fund Manager – Commodities at Tata Asset Management, who shares his outlook on gold, silver, copper and crude oil, explains the changing dynamics driving commodity prices, and suggests a 50:30:20 allocation to gold, copper and silver, respectively, for investors looking to build a commodity portfolio for the long term.
D-Street braces for weak opening on negative GIFT Nifty cues
Benchmark Nifty increased by 1.6% to close at 23,810 following an extended rally. This upward trend was influenced by easing crude prices and continuous foreign fund inflows. Analysts expect Indian equities to consolidate positively after a sharp recovery in recent sessions. The rupee appreciated by 9 paise against the US dollar amid substantial buying in domestic equity markets. India VIX rose by 1.
LTCG tax relief for these mutual fund investors proposed by SEBI; know how switching funds for portfolio rebalancing can save tax
The Securities and Exchange Board of India (SEBI) has put forth a proposal to exempt long-term capital gains tax for investors who switch mutual funds. This change if accepted by the government would enable individuals to adjust their portfolios without facing tax penalties, promoting more strategic reinvestment.
We will consider the call for review of LTCG tax: Finance minister Nirmala Sitharaman
"The circumstances have changed and, therefore, the voices of concern are louder,'' she said at a media event, in reference to reports that her administration has received suggestions to review levies on long-term capital gains (LTCG) for overseas investors. "I quite appreciate that. So, I'll consider all this... Our growth is very important, where people are putting their very best, we are able to see sustained 7(%)-plus growth.''
Uncertainty is certain: India is resilient and will emerge stronger
Despite global uncertainty, India remains well placed to weather economic and market disruptions, supported by resilient growth, deeper domestic capital markets and rising private investment. Stronger institutions, infrastructure spending and emerging industries could further reinforce the country’s long-term prospects.
Only 3.2% of working Indians trade stocks. Why Morgan Stanley likes NSE
Morgan Stanley has initiated coverage of NSE with an overweight rating and a price target of Rs 2,315, citing its dominant market share, strong liquidity and India’s underpenetrated capital markets. The brokerage expects revenue and normalised profit to grow at 15% annually between FY27 and FY29. It sees long-term growth opportunities but flags regulatory changes and market-share losses as key risks.
$64 billion out, $5 billion in? Why LTCG tax cut may not be enough to bring FIIs back
A reassessment of long-term capital gains tax is underway as foreign investors continue their significant selloff from Indian equities. Analysts at JM Financial project that tax relief may yield only $3–5 billion in fresh inflows. This minimal increase may not be sufficient to reverse the current trend of investor exodus amidst concerns over oil prices. India’s tax regime differentiates between dollar and rupee gains, impacting foreign investor returns significantly.
FM Sitharaman acknowledges foreign investor anxiety, says she will consider voices seeking tax changes before Budget
Union Finance Minister Nirmala Sitharaman acknowledged concerns from investors regarding potential tax changes to support equity markets. She emphasized that while taxation is vital, India's economic indicators remain robust and positive. Sitharaman highlighted the necessity for capital expenditure to sustain economic growth and fiscal prudence. On welfare, she noted significant improvements in access to essential services contributing to decreased poverty levels.
Finance Minister Sitharaman urges Tata to resolve feud amicably, rules out govt intervention
Finance Minister Nirmala Sitharaman emphasized the importance of resolving the ongoing dispute between Tata Sons and Tata Trusts. She stated that the matter should remain private to restore normalcy quickly. Sitharaman highlighted the critical nature of this situation for the Indian economy, particularly amidst foreign capital outflows. Concerns regarding the equity market and foreign investments were also acknowledged by the finance minister.
How are equity investments taxed in India? A guide to capital gains tax
In a bid to invigorate domestic and foreign mutual fund investments, India's Securities and Exchange Board has put forth recommendations for tax concessions. These proposals are designed to boost post-tax returns, particularly as market performance has been behind that of emerging counterparts. The current capital gains tax rates are seen as a hindrance, leading to demands for a review.
Diwali 2026: 77 stocks knock down D-St bears to deliver multibagger returns of up to 4,700% in a year
With Diwali 2026 on the horizon, 77 stocks have thrived despite market fluctuations, marking exceptional returns. Mrugesh Trading showcases an astonishing gain of 4,657%, while Axis Solution follows closely with 1,081%. Other strong performers are Sterlite Technologies and Cupid, each demonstrating impressive growth. Analysts are hopeful for a market rebound thanks to falling crude oil prices, which could positively impact sectors such as automotive, capital goods, and pharmaceuticals.
Tax-wise, $-foolish: Saving Dalal Street could come at a cost to Startup Street
India's financial landscape is experiencing pressure with foreign portfolio investors becoming net sellers in the market. There are discussions about implementing tax cuts to stabilize the situation, which could disadvantage domestic investors. A focus on only listed shares may divert investments from private markets and harm the startup ecosystem. Expert suggestions advocate for a universal tax reduction applicable to both listed and unlisted shares.
ET Wealth Expo: How should investors deploy Rs 10 lakh over next 10 years? Prateek Agrawal of Motilal Oswal AMC explains
Investors building a Rs 10 lakh mutual fund portfolio with a 5-10 year horizon should focus on growth-oriented strategies and consider diversifying across two fund managers, says Prateek Agrawal of Motilal Oswal AMC. He highlights flexi-cap funds, emerging sectors and AI-linked businesses as opportunities, while advocating focused investing and a mix of growth and value strategies.
India's ESOP tax rules need reform to ease employee burden
India’s ESOP tax rules impose tax on unrealised gains before employees receive cash, creating liquidity pressures. Reforming taxation through deferrals or concessional rates could encourage employee ownership and ease the burden.
ITC, RIL, HDFC Bank among top laggards as Nifty falls over 12% in 2026: Time to buy beaten-down stocks or wait for a recovery?
In 2026, the Nifty 50 index faced significant drops, with 34 out of 50 stocks plummeting by as much as 34%. Analysts believe that the sell-off is driven by foreign institutional investor exits and a conservative outlook on earnings. This decline presents potential opportunities for long-term investors as valuations dip below historical norms.
Abolish LTCG, rationalise STCG, STT rates on equities: PHDCCI to Finance Ministry
PHDCCI has recommended abolishing Long Term Capital Gains tax and modifying short-term capital gains taxes. The chamber suggests increasing the holding period for long-term investments to attract genuine investors. It emphasizes that current tax structures discourage investment due to double taxation on equities. Foreign Portfolio Investors have withdrawn significant funds from Indian equities, impacting investment levels. Government analysis of these recommendations may lead to changes in tax policy and structure.
Potential LTCG tax cut could revive FIIs’ India bet, says Jefferies: Which stocks may benefit most?
Jefferies sees a potential long-term capital gains tax (LTCG) cut as a possible trigger for foreign investors to return to Indian equities after record outflows. Banks, Reliance Industries, utilities and real estate stocks could be the biggest beneficiaries. Here’s where foreign investors are positioned and what a tax cut could mean.
Govt seeks investor and expert views on LTCG and STT as it reviews capital market levies amid FPI exodus
The government has initiated a reassessment of long-term capital gains tax and securities transaction tax. Stakeholders, including investors and tax experts, have been consulted for their views. The debate has gained momentum due to significant outflows of foreign portfolio investments. Current taxation methods may affect the attractiveness of Indian equities compared to global markets. The upcoming budget provides an opportunity to revisit these tax regulations.
Nifty's PEG ratio near 10-year low but why don't stocks look cheap yet? Valuation paradox explained
Nifty’s PEG ratio approaches a decade low, suggesting an enticing potential for valuation and earnings growth. The substantial drop in the forward P/E ratio has heightened hopes for a market recovery. However, rising bond yields and potential earnings downgrades pose challenges to investor sentiment. Selective opportunities arise across sectors, influenced by enhanced credit growth and evolving demand.
ETMarkets Smart Talk: Smallcap investors should consider a five-year SIP horizon amid volatility: Sorbh Gupta
In an interview with Kshitij Anand of ETMarkets, Sorbh Gupta, Head of Equity at Bajaj Asset Management Limited, says investors considering smallcap exposure could look at a five-year SIP horizon, depending on their risk appetite and financial goals. He also explains why market volatility may persist in the near term, where valuations look more attractive, and how investors should approach fresh investments amid global uncertainties.
Gold, global equities, largecaps, midcaps and smallcaps: Samco CEO Jimet Modi’s five-way portfolio formula
With India’s stock market caught between expensive mid- and smallcaps and largecaps that lack strong growth drivers, Samco Securities founder and CEO Jimeet Modi is recommending a deliberately balanced portfolio: 20% each in largecaps, midcaps, smallcaps, gold and global equities. He expects the market to remain range-bound for the next 10 to 12 months, with neither an immediate bull market nor a deep, panic-driven bear market.
Tax matters, as does capital: Is it time for India to reconsider its LTCG tax policy on listed equities amid rising global competition?
Debate on long-term capital gains (LTCG) tax and securities transaction tax (STT) has gained momentum, with the government recognizing its significance. With foreign portfolio investors withdrawing substantial funds from Indian equities, the impact of tax regimes on investment behavior and market liquidity warrants deeper analysis. Reforms are necessary to enhance India's competitiveness in attracting global capital.
Want exposure to India's biggest banks? Zerodha launches new ETF
Zerodha Fund House has launched the BSE Top 10 Banks ETF, tracking India’s largest listed banks. The NFO runs from October 12 to October 26, 2026, with a minimum investment of Rs 1,000, offering focused banking exposure.
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