SEBI wants LTCG tax to be removed for foreign investors: Report
Times of India 1 hr ago·2 Nov 2026, 9:00 am
SEBI has submitted a recommendation to the government to eliminate long‑term capital gains tax on equity investments made by foreign portfolio investors. The suggestion is part of a broader set of proposals aimed at boosting market participation ahead of the Union Budget.
If the tax were removed, foreign investors would face a lower cost of holding Indian equities, which could make the market more attractive relative to other emerging economies. Greater FPI inflows could support stock prices and improve liquidity, especially as Indian equities have lagged peers.
The proposal is advisory; the final decision rests with the finance ministry and will likely be announced in the upcoming budget. Investors should monitor the budget speech, any subsequent regulatory notifications, and early market reactions for clues on whether the tax change will be implemented.
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
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