Sensex, Nifty tomorrow 3 Nov: Will stock market jump on Sebi's 12.5% foreign ‌investors LTCG tax removal recommendation?

What happened: SEBI has reportedly recommended that the government remove the LTCG tax on foreign investors, and proposed LTCG relief for domestic mutual fund investors switching to new holdings, per Reuters sources. Key numbers: Foreign investors pay 12.5% LTCG on equity held Why it matters: The report ties the tax debate to sustained foreign outflows and concerns that LTCG and STCG rates are less competitive than some global peers. Finance Minister Nirmala Sitharaman said she was keen to hear views on STT but declined to comment on possible changes ahead of the February Union Budget.

SEBI has reportedly recommended that the government remove the LTCG tax on foreign investors, and proposed LTCG relief for domestic mutual fund investors switching to new holdings, per Reuters sources.

The report ties the tax debate to sustained foreign outflows and concerns that LTCG and STCG rates are less competitive than some global peers. Finance Minister Nirmala Sitharaman said she was keen to hear views on STT but declined to comment on possible changes ahead of the February Union Budget.