Kush Thakkar
13.6K posts
@kushthakkar183
CA FINAL Dropout ||Small Mid Cap Lover || NISM Cert. Research Analyst Disc: Views shared on stocks are personal.NOT SEBI REG. RA . Consult your Advisor
Reading in Financial Express that govt may give tax incentives to foreign investors like pension funds and endowments etc. This will not help at all and in fact will create more confusion a) Many pension funds/endowments buy US/foreign listed and traded Indian ETFs. Many pension funds/endowments buy into actively managed funds which have a mix of different types of investors so how will the benefit work where the tax is at fund/ETF level Note: Taxable entity in front of Indian tax authorities is the pooled Fund and not the underlying individual investors and there is no way to isolate the taxes of underlying investors and charge some and waive for others. c) What India and govt needs to see is "sort of" quick reversal of FII sentiment and flows. In fact the slowest response is normally from the Long term investors. First they will be confused about what new structure to adopt (investing direct vs., through funds/ETFs) and then anyway since their process is slow we will see not much change in flows for plus/minus a year. It is just easier to reduce/eliminate the taxes- perhaps just make LTCG zero beyond one year for all investors including domestic investors. If there is a perceived loss (I think there will be massive gains in confidence, animal spirits, higher investment, higher FX reserves etc) that may be (but should not be) adjusted via STT. This will also achieve the govt/SEBI objective of reducing speculation, F&O volumes etc.
Reading in Financial Express that govt may give tax incentives to foreign investors like pension funds and endowments etc. This will not help at all and in fact will create more confusion a) Many pension funds/endowments buy US/foreign listed and traded Indian ETFs. Many pension funds/endowments buy into actively managed funds which have a mix of different types of investors so how will the benefit work where the tax is at fund/ETF level Note: Taxable entity in front of Indian tax authorities is the pooled Fund and not the underlying individual investors and there is no way to isolate the taxes of underlying investors and charge some and waive for others. c) What India and govt needs to see is "sort of" quick reversal of FII sentiment and flows. In fact the slowest response is normally from the Long term investors. First they will be confused about what new structure to adopt (investing direct vs., through funds/ETFs) and then anyway since their process is slow we will see not much change in flows for plus/minus a year. It is just easier to reduce/eliminate the taxes- perhaps just make LTCG zero beyond one year for all investors including domestic investors. If there is a perceived loss (I think there will be massive gains in confidence, animal spirits, higher investment, higher FX reserves etc) that may be (but should not be) adjusted via STT. This will also achieve the govt/SEBI objective of reducing speculation, F&O volumes etc.
#FABTECH Tight ranges are the only missing piece for this to turn into a clean, top-tier setup. Everything else is already there a 40%+ move in five days shows its ability to move big and fast, and the pullbacks so far have been well-controlled with multiple demands at 20
𝗣𝗮𝘁𝗶𝗲𝗻𝘁 𝗗𝗼𝗺𝗲𝘀𝘁𝗶𝗰 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 must be 𝗥𝗲𝘄𝗮𝗿𝗱𝗲𝗱, 𝗻𝗼𝘁 𝗣𝗲𝗻𝗮𝗹𝗶𝘀𝗲𝗱. I explained in Parliament how Investment in India remains heavily taxed, and why it needs to change.
No stopping for cupid One of the name that just keeps moving up
