Sebi backs removal of LTCG for foreign investors: Report

What happened: SEBI has recommended that the government remove the long-term capital gains tax on foreign investors and grant tax relief to domestic mutual fund investors, per two sources. The proposals are not binding. Key numbers: Foreign investors sold a record $31 billion in Indian stocks this year. Why it matters: The recommendations follow two years of meetings with foreign investors as selling persisted. Jefferies said any reduction in capital gains taxes could improve the market's attractiveness and support portfolio inflows.

SEBI has recommended that the government remove the long-term capital gains tax on foreign investors and grant tax relief to domestic mutual fund investors, per two sources. The proposals are not binding.

The recommendations follow two years of meetings with foreign investors as selling persisted. Jefferies said any reduction in capital gains taxes could improve the market's attractiveness and support portfolio inflows.