Nothing differently was done for drawing investments. But of course the situation is very different now.

Circumstances have changed. Challenges have grown.

More FII outflows net have happened,” Sitharaman said, adding that voices of concern were “louder” owing to this. She added, “I quite appreciate that.

So I will consider all this.”LTCG debate getting interesting as FM looks optimistic.đŸ”„ FM Nirmala Sitharaman says she recognises the “sensitivity and anxiety” among equity investors and the voices calling for changes in equity-market taxation. https://t.co/akAVDxZy7O— GrowthEdge (@growth_edge_) November 2, 2026 Also Read | Sebi’s proposal on LTCG tax, RIL surge lift stock marketsWhat is the LTCG tax? How does it affect investors?The LTCG tax is levied on profits earned from selling a long-term capital asset, i.e. listed equity shares and equity mutual funds which have been held for more than 12 months.

While long-term capital gains on equity up to â‚č1.25 lakh in a financial year are exempt from taxation, gains exceeding this amount are taxed at a flat rate of 12.5% (plus applicable surcharge and 4% cess) without indexation benefit.A higher LTCG would mean reduction in post-tax returns, with investors now also claiming “double-taxing”, given that companies already pay corporate income tax on earnings. The debate over LTCG gained momentum after the Securities and Exchange Board of India (SEBI) recommended scrapping of the tax on foreign investors, according to a report by news agency Reuters.

This comes amid concerns that the tax on capital gains can discourage foreign capital from staying in India, as compared to other countries which offer more tax-friendly environments.Also Read | Debate on LTCG, securities tax 'healthy', says Finance Minister Nirmala Sitharaman‘We need capital and equity’: Sitharaman on sustaining 7% economic growthSitharaman highlighted that the investors' concerns come at a time when “growth is very important.” She said that the country needs “capital and equity” to sustain an economic growth of 7 per cent and above.“Although last few years I have been placing a lot of emphasis on bond market, deepening it, widening it. Now we also have this voice which says, come on, even equity needs that kind of support,” the finance minister asserted.

While Sitharaman said she did not want to say anything more “at this stage”, she said she “recognised the voice.” Sitharaman had, last month too, said it was “healthy" to have a debate on LTCG, adding that she was “keen” to hear investors on the matter.Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs.

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