Equity Tax Explained: Will Proposed Tax Cuts Make Stock Market Investing More Attractive?

India's equity markets are witnessing renewed debate over Long-Term Capital Gains (LTCG) tax reforms as SEBI reportedly recommends scrapping the 12.5% LTCG tax for Foreign Portfolio Investors (FPIs). Could tax relief bring foreign investors back to Indian markets and reverse persistent FII outflows? In this episode of Money Today, tax expert Gauri Chanda explains the potential impact of LTCG tax cuts, proposed tax-free mutual fund switching after a one-year holding period, and possible changes to Securities Transaction Tax (STT). She also discusses currency depreciation, market valuations, global investment opportunities and why simpler taxation and portfolio diversification matter for investors. What could these proposals mean for foreign investors and domestic retail investors?