{"id":334721,"date":"2026-11-02T12:27:26","date_gmt":"2026-11-02T06:57:26","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=334721"},"modified":"2026-11-02T12:27:26","modified_gmt":"2026-11-02T06:57:26","slug":"sebi-backs-removal-of-ltcg-for-foreign-investors-fpi-outflows-mutual-fund-reinvestment-relief-explained","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/sebi-backs-removal-of-ltcg-for-foreign-investors-fpi-outflows-mutual-fund-reinvestment-relief-explained\/","title":{"rendered":"Sebi Backs Removal of LTCG for Foreign Investors, Says Report: What the Proposal Means, Why FPI Outflows Hit Rs 3.04 Lakh Crore in 2026 and What Changes for Indian Investors"},"content":{"rendered":"

Sebi reportedly backs removing LTCG for FPIs; also proposes MF reinvestment relief. 12.5% LTCG still applies. FPI outflows Rs 3.04 lakh crore in 2026. Decision likely in Budget 2027-28.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

LTCG for foreign investors may be scrapped: sources say Sebi has backed removing long-term capital gains tax for foreign portfolio investors and has also proposed exempting domestic mutual fund investors from LTCG when they sell existing holdings to reinvest in new ones. Nothing has changed in law yet: the 12.5% rate still applies, and a decision is likely in Union Budget 2027-28. FPIs pulled out Rs 3.04 lakh crore from equities in 2026.<\/p>\n<\/p><\/div>\n

LTCG for foreign investors<\/strong> could soon be a thing of the past, if a report is right. Sources told a news agency that Sebi has backed removing long-term capital gains (LTCG) tax for foreign portfolio investors (FPIs), and has separately proposed tax relief for domestic mutual fund investors who switch holdings. This explainer on LTCG for foreign investors<\/strong> covers what has been reported, what the law says today, why the government is under pressure, and what it could mean for your investments.<\/p>\n

This is based on media reports citing unnamed sources and on public data. No notification or Budget announcement has been made, so treat it as a proposal and not a rule.<\/p>\n

Click Here – Get Free Investment Predictions<\/strong><\/a><\/p>\n

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