# India Should Scrap Equity Tax on Foreigners

> Edelweiss head urges scrapping foreign equity tax to boost market inflows.
- Title: India Should Scrap Equity Tax on Foreigners · mint | Shortify
- Summary: Edelweiss head urges scrapping foreign equity tax to boost market inflows. Edelweiss Financial Services Ltd.
- Keywords: capital gains tax, foreign portfolio investors, equity market, edelweiss financial services, rashesh shah, india stock market, foreign investors, capital gains tax exemption, mint
- Source: mint — https://livemint.com/market/india-should-scrap-equity-tax-on-foreigners-says-edelweiss-head-11794026589181.html
- Published: 2026-11-07T04:43:08+00:00
- Read time: 1 min
- Topics: capital gains tax, foreign portfolio investors, equity market, edelweiss financial services, rashesh shah, india stock market, foreign investors, capital gains tax exemption, money, business
## Edelweiss head urges tax change
Edelweiss Financial Services Ltd. Chairman Rashesh Shah says India should remove capital gains tax on foreigners to revive the stock market.

> We need to showcase to the foreigners we want them
## Growing call for tax exemption
Dozens of people are pushing the government to exempt foreign portfolio investors from long-term capital gains tax on listed equities.
## Tax rates for foreign investors
Long-term gains on listed equities held for more than a year are taxed at 12.5%, while short-term gains are levied at 20%.
## Foreign investor outflows
Foreign investors have been relentless sellers of Indian stocks, with net outflows exceeding $28 billion so far this year.
## Recent market rebound
Foreign investors have poured in more than $5 billion into Indian equities over the past three weeks, helping drive a nearly 10% rebound in the domestic market.
## Potential capital inflows
Shah estimates Indian mutual funds could channel $40 billion to $50 billion annually into equities, while insurance companies and pension funds could contribute $20 billion to $25 billion.
## Key takeaway

Edelweiss Financial Services Ltd. Chairman Rashesh Shah says removing capital gains tax on foreigners could revive India's stock market and support the rupee.