New Delhi: Securities and Exchange Board of India chairman U.K. Sinha on Tuesday said the capital markets regulator will take steps to revive domestic investor sentiment, while adding that tax rates in the securities market are high.
“Mutual fund inflows into the market have been quite modest. Primary markets have also not seen much interest. Sebi will make all efforts to revive domestic sentiments,” Sinha said, while addressing reporters at the launch of the National Stock Exchange’s SME (small and medium enterprises) platform. He said Sebi will take steps to bring depth in the securities market and encourage more retail investors.
Sebi’s board is expected to meet later this month where a slew of measures to revive capital markets are expected to be announced. Finance minister P. Chidambaram had hinted at some measures by Sebi on Monday.
The government has been trying to encourage flow of household savings into mutual funds and insurance policies.
Asked about his views on the securities transaction tax, Sinha said it is the government’s prerogative to decide the rates. However, he said Sebi’s view has been that tax rates in the securities market is high and that taxes should be used in a manner that promotes long-term investors.
He added that taxes should be allowed across sectors rather than just in the securities market.