New Delhi: A stockbrokers' 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, especially 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 Long term capital gain tax and taxation on dividends in the hands of Indian investors should be withdrawn," it said.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 until the next budget. However, currently, we feel that PSU banks, which need equity funds for recapitalization, can raise funds from retail investors by offering them an appropriate discount."
The cost of transaction in Indian exchanges was among the issues raised by the ANMI at the meeting, the release said.
As per an analysis by the World Bank, the turnover ratio of the Indian stock market has fallen by 60 per cent from 143 in 2008 to 58 in 2018, it said.
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