SEBI Pushes For LTCG Tax Relief To Woo Foreign Investors
What Happened
SEBI has reportedly recommended that the government remove the long-term capital gains tax for foreign investors, according to Reuters-based reports citing two people with direct knowledge of the proposal. Foreign investors currently pay 12.5% LTCG tax on securities held for more than a year. SEBI has also reportedly proposed LTCG relief for domestic mutual-fund investors when they sell existing holdings to reinvest in new schemes. The recommendations come after foreign investors sold a record $31 billion of Indian equities in 2026.
Key Takeaways
No tax rule has changed yet. These are reported, non-binding pre-Budget recommendations from SEBI, and the final decision rests with the government.