SBI Research calls for abolition of LTCG tax on equities to boost foreign capital inflows
Economic Times 1 hr ago·13 Oct 2026, 5:23 am
SBI Research has recommended abolishing the long-term capital gains (LTCG) tax on equities to attract foreign investment. The report suggests that removing this tax, combined with extending the holding period to two to three years, could improve investor sentiment and encourage capital inflows.
This proposal comes as foreign portfolio investors have been withdrawing funds from Indian markets. By making the tax structure more competitive, the government aims to stabilize the market and boost liquidity. However, the actual impact will depend on the government's response to these recommendations.
Investors should watch for any official statements from the finance ministry or the finance minister regarding this proposal. A shift in policy could signal a more favorable environment for foreign capital, potentially influencing market trends in the coming quarters.
Key takeaways
- Category: Corporate Action.
- 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.
