Breaking News

You are here » Indian-Commodity  :  Economy  :  Volatility in Indian markets may continue, LTCG tax will impact markets: SEBI chief

12-Feb2018

Volatility in Indian markets may continue, LTCG tax will impact markets: SEBI chief

Since the Indian benchmark indices have fallen by over 1% and closed at a one-month low level, the capital markets regulator, Securities and Exchange Board of India (SEBI) chief Ajay Tyagi has said that the volatility in the Indian equity markets may continue for some time. He explained that the global factors are mainly responsible for the volatility in the Indian markets, and outweighs the concerns related to long-term capital gains tax (LTCG). He also said that there are no issues of concern for investors in terms of safety and security of the Indian marketplace.

On the matter of re-introduction of LTCG tax as proposed in the Budget, Tyagi said that SEBI has not received any representation from investors so far against this. He admitted that the tax would impact the market and also said that it will be wrong to say LTCG will have no impact at all on Indian markets, but any such impact would be small and global factors pose bigger risks. About the timing of imposing the LTCG, he said it was an opportune time as markets were booming.

SEBI chief further said that small investors need not panic since they are doing well to invest via Mutual Funds. But, he pointed out that they cannot be as risk-free as bank deposits. He added that the market regulator is also set to come out with norms on corporate bonds to encourage firms to tap this route for fund raising. Besides, Finance Minister Arun Jaitley, on February 1, proposed to tax LTCG on equities exceeding Rs 1 lakh at 10%, which is expected to bring in a revenue of Rs Rs 20,000 crore.


Related News

View all news

Bank credit growth increases 14.5%, deposits up 9.63%

The Reserve Bank of India (RBI) in its latest report has showed that bank credit growth increased by 14.5 percent at Rs 94.29 lakh crore, while deposits grew at a tepid 9.63 percent to Rs 121.22 lakh crore......

Direct tax collection stands at Rs 7.89 lakh crore in April-January of FY19

Net direct tax collection stood at Rs 7,88,930 crore in the April-January period of current fiscal (2018-19). The Minister of State for Finance Shiv Pratap Shukla has said there were 9.92 crore direct......

Rate cut by RBI to boost economy, make loan affordable to small businesses: Goyal

After the Reserve Bank of India (RBI) cut repo rate in its latest bi-monthly policy, Finance Minister Piyush Goyal has said the RBI's this move will give a boost to the economy by providing affordable......

Top News

View all news

Kridhan Infra's arm bags order worth $36 Million

Kridhan Infra's (KIL) Singapore subsidiary -- KH Foges has bagged a new order in Singapore worth $36 Million (Rs 187 Crore). The subsidiary has been contracted to execute Piling Works & Earthworks......

Bharti Airtel upgrades 4G network in Mumbai

Bharti Airtel has upgraded 4G network in Mumbai, with the deployment of 'LTE 900 technology' that will enhance indoor network coverage and improve network experience for customers.With the roll-out of......

Refex Industries to raise Rs 25 crore via Rights Issue

Refex Industries has received approval to raise of funds by way of offer and issue of Equity Shares to the Members of the Company on Rights Issue at such price and rights entitlement ratio for an amount......