On Tuesday, Securities and Exchange Board of India (SEBI) said that it will take measure to revive domestic investor sentiment in capital market. The regulator also added that tax rates in the securities market are high.
According to SEBI chairman UK Sinha, mutual fund investments in the market have been quite modest. The regulator will take efforts to revive domestic sentiments. Mr Sinha was speaking at the launch of the National Stock Exchange’s SME (small and medium enterprises) platform.
He said SEBI will take steps to bring depth in the stock market and attract retail participation. Sebi’s board is likely to meet later this month where a slew of measures to revive capital markets would be announced.
The SEBI chairman said that tax rates in the securities market is high and taxes should be used in a way to attract long-term investments. He further said that taxes should be allowed across sectors rather than just in the securities market.
Meanwhile, the finance ministry has been trying to encourage flow of household savings into mutual funds and insurance policies.