Overview
- Participants asked that the securities transaction tax on cash equity trades remain lower than on derivatives to encourage long-term investing.
- They proposed lifting household allocation to equities from roughly 5% to about 8% to deepen retail participation.
- Industry representatives recommended levying buyback tax only on the profit component rather than the entire payout.
- Stakeholders urged aligning the short-term dividend tax for domestic investors with the 20% rate applicable to NRIs.
- Finance Minister Nirmala Sitharaman chaired the fourth consultation in New Delhi, with BSE, AMFI and senior officials present as the ministry evaluates inputs for the 2026–27 Budget.