SEBI Proposes Tax Relief to Boost Equity Markets; RIL Shares Rally

SEBI recommended scrapping the Long-Term Capital Gains tax for foreign investors as part of efforts to revive underperforming equity markets. The regulator also proposed an LTCG exemption for mutual fund investors who sell existing holdings to reinvest in other funds. These proposals led to a rally in Reliance Industries shares.

The tax changes are intended to improve post-tax returns and make Indian equities more competitive against other emerging markets. However, experts note that primary drivers for foreign capital remain earnings growth, valuations, currency stability, and India's relative attractiveness within emerging markets.

SEBI proposes tax relief for domestic investors following investor meetings.