6 publishers · first seen Mon, 02 Nov 2026 00:00 UTC · updated Tue, 03 Nov 2026 06:22 UTC
The Securities and Exchange Board of India (SEBI) has recommended removing the long-term capital gains (LTCG) tax for foreign investors and providing tax relief to domestic mutual fund investors, aiming to make Indian markets more attractive and encourage investment. The proposals, which are part of SEBI's pre-Budget representations to the government, are not binding, and the final decision rests with the government. The move comes as Indian equities have underperformed emerging market peers, with foreign investors selling a record $31 billion worth of Indian stocks this year. SEBI has suggested that foreign investors be exempted from the 12.5% LTCG tax currently applicable to equity investments held for more than a year. Additionally, SEBI has proposed that switching from one mutual fund scheme to another should not be treated as a taxable sale if the units have been held for more than a year, to encourage continued investment in domestic funds.
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