SBI Research recommends LTCG on equities to be scrapped; calls for DTAA clarity
Times of India 2 hrs ago·12 Oct 2026, 4:10 pm
SBI Research has suggested scrapping the Long-Term Capital Gains (LTCG) tax on equities to improve stability for foreign investors. This proposal also calls for clearer rules under the Double Taxation Avoidance Agreement (DTAA) to reduce compliance hurdles. The goal is to encourage steady foreign inflows into the Indian market.
For investors, this move could signal a more welcoming environment for Foreign Portfolio Investors (FPIs). A reduction in tax friction might make Indian equities more attractive compared to other markets, potentially boosting liquidity. However, the government has not yet confirmed this change, so the proposal remains a topic of debate for the upcoming Union Budget 2026.
Investors should watch the government's response to this recommendation. If implemented, it could lead to sustained foreign capital inflows, supporting stock prices. Conversely, if the tax is retained, it may not significantly alter the current investment landscape.
Key takeaways
- Category: Corporate Action.
- AI reads the tone as negative (potentially bearish) 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 negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
