At a time when foreign portfolio investors (FPIs) continue to pull money out of Indian markets, concerns around taxation and policy consistency are once again under the spotlight. Speaking to ET Now, market expert Sudip Bandyopadhyay said India needs to seriously reconsider the structure of securities transaction tax (STT) and long-term capital gains tax (LTCG) if it wants to remain an attractive destination for global capital.
According to Bandyopadhyay, while domestic retail participation has helped prevent a sharp market collapse despite sustained FPI selling, that should not lead policymakers into believing foreign investors are no longer important.
