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Budget 2027: FICCI seeks removal of LTCG tax on listed securities, suggests STT hike

·Moneycontrol·Impact 3/5 · Notable

The Federation of Indian Chambers of Commerce and Industry (FICCI) has asked the government to remove the long-term capital gains tax (LTCG) on listed securities in the upcoming 2027-28 Budget. This move aims to reduce the burden on investors who hold shares for extended periods. If implemented, it could boost investor confidence and encourage long-term investments in the stock market.

Read the source report: Moneycontrol →

Why it matters

FICCI's proposal could lead to increased investor confidence and higher market participation. A higher STT on delivery trades could offset the revenue loss from removing LTCG tax on listed securities.

Market impact

Impact score
3 / 5
Market signal
Positive / risk-on
Category
Market moves
Model confidence
55%

Transmission channels

Tax exemption restoration→Increased investor confidence→Higher market participation→Indian equities rise→Tax revenue offset

Likely winners & losers

Winners

  • Indian equities
  • Financial services

Under pressure

  • Government revenue

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MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Moneycontrol. For information only — not financial advice.