Angel One, CDSL, Motilal Oswal shares rise up to 7% as FM Sitharaman says open to reviewing equity tax concerns

Angel One was the top gainer, rising 7 percent, while Motilal Oswal Financial Services advanced 6 percent. CDSL and Computer Age Management Services gained 5.4 percent and 4.64 percent, respectively. Groww, BSE, Nuvama Wealth Management and Multi Commodity Exchange of India (MCX) rose between 1 percent and 3 percent. The gains came after Sitharaman indicated that the government was open to considering feedback from investors on equity taxation, raising hopes of a possible review of the existing tax structure.

Moneycontrol had reported on October 26 that a decision to restructure the long-term capital gains (LTCG) tax on equities, applicable to both foreign and domestic investors, could be taken in the coming weeks, possibly before the Union Budget. Responding to a question on whether the upcoming Union Budget could provide a more favourable tax environment or a red-carpet treatment to foreign investors, Sitharaman stopped short of committing to any changes in equity taxation.

However, she acknowledged that the circumstances facing investors had changed and that concerns over the taxation regime had become louder. "I realise the anxieties prevailing among retail investors and equity participants," she said, adding that the government recognised the concerns being raised by market participants. Currently, LTCG tax on gains from the sale of equities by foreign and domestic investors is levied at 12.5 percent without indexation benefits.

The tax applies to gains exceeding Rs 1.25 lakh in a financial year from listed shares. There is no such exemption limit for gains from the sale of unlisted shares.