SEBI has called for the Securities Transaction Tax (STT) to be kept at levels which would incentivise people to make investments for the long-term, SEBI Chairman U.K. Sinha said on Tuesday.
The Chairman also said the STT rate is rather high now. “It should be used in a manner that people (investors) are incentivised to invest for the long term rather than for short term (speculation),” he told reporters on the sidelines of launch of NSE’s listing platform for Small and Medium Enterprises here.
Noting that STT is the prerogative of the Government, Sinha said it is not something where the market regulator can take a call. “SEBI’s view has been that in securities market, the tax rate is rather high,” he noted. According to him, taxes should be across various segments.
NSE Managing Director and CEO, Ravi Narain, too echoed similar views. All asset classes should be treated equally for taxation purposes and there should not be any arbitrage between two different asset classes, Narain said.