Ahead of Budget 2027, Sebi recommends removal of 12.5% LTCG tax imposed on foreign investors | Latest update
Mint 3 hrs ago·2 Nov 2026, 1:31 pm
The Securities and Exchange Board of India (Sebi) has recommended removing the 12.5% long-term capital gains (LTCG) tax on foreign equity investments. This proposal, submitted ahead of the 2027 Union Budget, aims to make the Indian market more attractive to international investors by reducing their tax liability. Additionally, Sebi suggested offering tax relief to domestic mutual fund investors who switch between schemes.
This move could significantly impact market sentiment. By lowering costs for foreign portfolio investors, India may see increased foreign inflows, potentially boosting stock valuations. For domestic investors, the proposed tax relief on scheme switches could improve liquidity and encourage portfolio rebalancing.
Investors should watch for the government's final decision in the Budget. If approved, this could mark a major shift in India's tax regime, encouraging both foreign and domestic capital to stay invested in the market.
Excerpt from Mint
SEBI has proposed scrapping LTCG tax on foreign equity investments and offering tax relief to domestic mutual fund investors switching schemes. The recommendations have been submitted ahead of Budget 2027 and await government approval. The Securities and Exchange Board of India (SEBI) has recommended scrapping…Read the original at Mint
Key takeaways
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development and could move the stock. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
