SEBI Flags High Transaction Costs In Market, Suggests Scrapping Of 12.5% LTCG Tax For FPIs
NDTV Profit 3 hrs ago·2 Nov 2026, 12:49 pm
The Securities and Exchange Board of India (SEBI) has flagged high transaction costs in the market. To address this, the regulator has suggested scrapping the 12.5% long-term capital gains (LTCG) tax for Foreign Portfolio Investors (FPIs). This move is aimed at making the Indian market more competitive and attractive to global investors.
This proposal could lead to increased foreign inflows into the Indian equity market. For retail investors, it highlights the ongoing efforts to improve market efficiency. However, the implementation of this suggestion depends on the government's final decision.
Investors should watch for the government's response to SEBI's proposal. Any changes in the tax regime could significantly impact market sentiment and foreign investment flows in the coming months.
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.
