Budget 2018: Overseas investors demand status-quo on LTCG tax

Increase in holding period or tax rates could dim India's appeal, they say

The Asia Securities Industry and Financial Markets Association (Asifma), a lobby for overseas investors, met with finance ministry officials last week amid buzz that the holding period to avail long-term capital gains (LTCG) in equities could be raised in the Union Budget 2018.
 
Sources said foreign portfolio investors (FPIs) urged the government not to take such a decision as it would further escalate the cost of transaction and impact incremental flows into domestic equities.
 
Transaction cost for dealing with Indian shares is already one of the highest worldwide.
 
The recent policy measures taken by the government such