A stock brokers' association has asked the government to take a slew of measures, including lower transaction cost and withdrawal of long-term capital gains tax, for making equity investment more attractive, according to a release.
The issues were raised by the Association of National Exchanges Members of India (ANMI) at a meeting of financial sector representatives chaired by Finance Minister Nirmala Sitharaman on Friday last week, the association said in a release.
"Due to the steep fall in markets in July the sentiment has turned acutely negative. This calls for urgent steps to boost investor sentiment specially for Indian investors. Long term capital gain tax and taxation on dividends in the hands of Indian investors should be withdrawn," it said.
"We strongly believe that equity investment needs to be incentivized. We may not be in a position to give any fiscal incentives till the next budget. However, currently we feel that PSU banks, which need equity funds for recapitalisation, can raise funds from retail investors by offering them an appropriate discount."
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