LTCG Tax To Be Scrapped? FM Sitharaman Open To Suggestions | Bloomberg Forum 2026

Could India scrap the Long-Term Capital Gains (LTCG) tax on equity investments? Finance Minister Nirmala Sitharaman has said she is open to hearing suggestions on removing the tax, sparking fresh interest among stock market investors. Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, Sitharaman indicated that she would keenly listen to views on the proposal, although no decision to abolish LTCG tax has been announced. Her remarks come after SBI Research recommended eliminating LTCG tax on equities and extending the investment holding period to two to three years to encourage long-term capital flows. The proposal comes amid significant foreign portfolio investor outflows from Indian equities, raising questions about investment attractiveness and market stability. Could removing LTCG tax encourage investors to stay invested longer? What would such a change mean for stock market participants? Watch Sitharaman's remarks from the Bloomberg New Economy Forum 2026. Subscribe to Business Today TV for market updates.