SEBI recommends ending LTCG tax for foreign investors, easing mutual-fund switches

SEBI recommends ending LTCG tax for foreign investors, easing mutual-fund switches

India's securities regulator, the Securities and Exchange Board of India (SEBI), submitted non-binding recommendations to abolish the 12. 5% long-term capital gains (LTCG) tax on foreign equity holdings and to exempt domestic mutual-fund investors from LTCG tax when switching schemes, pending government approval ahead of the 2027 budget.

The proposal follows earlier government deliberations about cutting the same tax to spur equity market participation, as reported by the Indian Express. Jefferies warned that a reduction could attract foreign portfolio inflows, while analysts cited by Finshots argued that the tax is not the primary cause of recent foreign outflows.

Acteurs

Indian government senior government official Finance Minister Nirmala Sitharaman SBI Group Chief Economic Adviser Soumya Kanti Ghosh State Bank of India

Lieux

India Mumbai, India

Articles

2 novembre 2026
4 au total
Ahead of Budget 2027, Sebi recommends removal of 12.5% LTCG tax imposed on foreign investors
Ahead of Budget 2027, Sebi recommends removal of 12.5% LTCG tax imposed on foreign investors

Livemint • 02 nov. 13h31

The Securities and Exchange Board of India has submitted non-binding recommendations to remove the 12.5% long-term capital gains tax on foreign equity holdings and to exempt domestic mutual-fund investors from LTCG tax when switching schemes, pending government approval ahead of the 2027 budget.

Crédibilité 78% Manip. 8% Centre
Sebi proposes LTCG tax relief for FPIs: What it means for Indian markets
Sebi proposes LTCG tax relief for FPIs: What it means for Indian markets

Business Standard • 02 nov. 08h46

India's securities regulator has suggested scrapping long-term capital gains tax on foreign portfolio investors and allowing domestic mutual-fund investors to switch schemes without tax, pending government approval.

Crédibilité 82% Manip. 8% Centre
SEBI backs removal of LTCG tax for foreign investors: Report
SEBI backs removal of LTCG tax for foreign investors: Report

Moneycontrol.com • 02 nov. 06h44

The Securities and Exchange Board of India (SEBI) has recommended scrapping long-term capital gains tax on equity investments by foreign investors and allowing domestic mutual-fund investors to avoid the tax when selling holdings to purchase new ones.

Crédibilité 52% Manip. 8% Centre
SEBI backs removal of LTCG tax for foreign investors: Report
SEBI backs removal of LTCG tax for foreign investors: Report

Moneycontrol.com • 02 nov. 06h44

The Securities and Exchange Board of India has recommended eliminating the 12.5% long-term capital gains tax on foreign investors and allowing tax-free switches between domestic mutual fund schemes held for over a year, ahead of the upcoming budget.

Crédibilité 68% Manip. 8% Centre
30 octobre 2026
1 au total
Will cutting LTCG tax on equities bring foreign investors back?
Will cutting LTCG tax on equities bring foreign investors back?

Finshots • 30 oct. 01h32

Analysts argue that high long-term capital gains tax is not the main driver of foreign investors pulling money from Indian stocks, and reducing the tax may not reverse the trend.

Crédibilité 72% Manip. 9% Centre
29 octobre 2026
1 au total
Potential LTCG tax cut could revive FIIs’ India bet, says Jefferies: Which stocks may benefit most?
Potential LTCG tax cut could revive FIIs’ India bet, says Jefferies: Which stocks may benefit most?

The Economic Times • 29 oct. 04h32

Jefferies warns that a reduction in India's long-term capital gains tax may revive foreign portfolio inflows, with banks, Reliance Industries and other large-caps likely to benefit the most.

Crédibilité 72% Manip. 9% Centre
26 octobre 2026
1 au total
Budget 2027: govt weighs LTCG tax cut, dollar
Budget 2027: govt weighs LTCG tax cut, dollar

The Indian Express • 26 oct. 05h06

The government is weighing options, including a possible cut to the 12.5% long-term capital gains tax, as it seeks to revive equity market participation amid weak returns and low wage growth.

Crédibilité 72% Manip. 9% Centre