Investor Vijay Kedia has called for the complete abolition of long-term capital gains (LTCG) tax on listed equities, saying India needs more 'patient capital' to support entrepreneurship and long-term wealth creation.
In an X post directed at Finance Minister Nirmala Sitharaman and the Finance Ministry, Kedia said long-term shareholders should not be viewed as speculators, but as providers of 'patient risk capital'.
"By investing in and holding businesses, investors help companies expand, create jobs, innovate and contribute to India's economic growth," he wrote on a social media platform.
Respected @nsitharaman ji and @FinMinIndia ,
— Vijay Kedia (@VijayKedia1) May 27, 2026
Suggestion 1 of 3 for strengthening India's capital markets:
Long-term capital gains tax on listed equities should be abolished.
A long-term shareholder is not a speculator but a provider of patient risk capital. By investing in and…
He argued that India needs large amounts of long-term capital to build world-class companies, infrastructure and global businesses.
According to him, tax policies should encourage households to shift savings from passive assets such as gold into productive investments in businesses that create jobs, generate tax revenues and build national wealth.
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Kedia also said that companies already give a huge amount of taxes to the government through corporate tax, GST, income tax on employees, customs duties, stamp duty and other levies. "Long-term capital gains are often the final outcome of economic activity that has already generated substantial tax revenues," he added.
The Long-Term Capital Gains (LTCG) tax on stocks has been a debated issue in India for a long time. It was brought back in 2018 after being removed for more than 10 years.
Kedia stated that long-term investors are not just 'traders making profit,' but people who actually support companies for many years. When someone invests and holds a company's shares for a long time, they help that business grow.
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A long-term shareholder is a partner in wealth creation, not merely a participant in market transactions. Tax policy should reward long-term ownership of productive businesses and distinguish it from short-term speculation," he mentioned.
Kedia concluded that India needs more patient capital, entrepreneurship and long-term investing and said abolishing the LTCG tax on listed equities would be a strong step in that direction.
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