# Nilesh Shah on tax relief and foreign investment

> Kotak's Shah says tax cuts may attract foreign funds but won't fix market exits.
- Title: Nilesh Shah on tax relief and foreign investment · mint
- Summary: Kotak's Shah says tax cuts may attract foreign funds but won't fix market exits. Nilesh Shah of Kotak Mahindra AMC states easing tax burdens could help…
- Keywords: nilesh shah, kotak mahindra amc, capital gains tax, securities transaction tax, foreign investment, india, market, investors, news, Nilesh, Shah, tax
- Source: mint — https://livemint.com/market/stock-market-news/tax-stt-ltcg-foreign-investment-nilesh-shah-kotak-11792126801638.html
- Author: Dipti Sharma
- Published: 2026-10-16T06:30:00+00:00
- Read time: 1 min
- Topics: nilesh shah, kotak mahindra amc, capital gains tax, securities transaction tax, foreign investment, india, market, investors, news
## Tax burden on investors
The double burden of securities transaction tax and capital gains tax has long been a sore point for investors.
## Finance minister's remarks
Finance minister Nirmala Sitharaman acknowledged the debate over long-term capital gains tax and STT but did not commit to changes in the upcoming Union budget.
## Foreign investors' challenges
Foreign investors face tax frictions as they cannot claim credit for taxes paid in their home countries.
## Market reallocation
Global investors are reallocating portfolios rather than exiting India, shifting across sectors and market caps.
## Current market concerns
Oil prices, supply disruptions, rising US interest rates, and tax friction are key market worries.
## Sector opportunities
Consumption sectors like automobiles, alcoholic beverages, travel and tourism show opportunities for premiumization.
## Banking sector outlook
Banking and financial services are attractive with deposit and credit growth above 15% and non-performing assets at historic lows.
## Investor behavior differences
Global investors seek higher returns while Indian investors are willing to settle for lower returns.
## Foreign investment return
Foreign portfolio investors would return to India if investment frictions are removed and valuations look attractive relative to other markets.
## Market risk management
Investors should focus on managing greed and fear rather than predicting market movements.
## Key takeaway

Nilesh Shah of Kotak Mahindra AMC states easing tax burdens could help foreign investors but won't reverse outflows without addressing global economic pressures.