Centre, Sebi likely to remove tax on buybacks, LTCG to lift sentiment

Investors have already swamped the government and Sebi with such demands as stocks of several companies have taken a beating

In a bid to lift sentiment, the Centre and capital markets regulator Sebi are weighing the possibility of reducing the tax burden on investors. They are considering temporary removal of tax on share buybacks and on long-term capital gains (LTCG).

These measures could be part of an ongoing exercise to provide relief and exemptions to India Inc and investors, amid the turmoil caused by the stock market meltdown, due to a halt in economic activity.

People in the know said these measures are under serious consideration and could be announced after further deliberations between various stakeholders.

Investors have already swamped the government and