India regulator proposes investor tax relief
India's securities regulator SEBI has recommended removing the 12.5% long-term capital gains tax on foreign equity investors, according to information disclosed on November 2. It also proposed relief for domestic mutual fund investors switching investments. Foreign investors have withdrawn approximately $31 billion from Indian equities this year.
The proposals aim to revive foreign participation in India's stock market. However, SEBI's recommendations are non-binding and require government approval. Any tax reduction could improve investment conditions while also affecting fiscal revenue.
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