India Should Scrap Equity Tax on Foreigners, Says Edelweiss Head

Detailed summary

India should consider removing the capital gains tax imposed on foreigners to help revive the country’s stock market, Edelweiss Financial Services Ltd. Chairman and Managing…

India should consider removing the capital gains tax imposed on foreigners to help revive the country’s stock market, Edelweiss Financial Services Ltd. Chairman and Managing Director Rashesh Shah said, adding to a growing clamor for the exemption to boost inflows and support the local currency.

“We need to showcase to the foreigners we want them,” Shah said in an interview with Bloomberg Television’s Menaka Doshi and Haslinda Amin in Mumbai on Friday. “If India wants foreign investors to come back, we want India to be a good permanent allocation for foreigners, we should do something and removing capital gains tax for foreigners might be an easier answer.”

Shah joins dozens who are pushing the government to exempt foreign portfolio investors from paying long-term capital gains tax on listed equities.

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