Thursday, August 06
Deepak Shenoy, CEO, Capitalmind Asset Management said that the recent increase in Securities Transaction Tax (STT) will directly impact arbitrage mutual funds, leading to a reduction in investor returns of around 0.5% over the next year. He points out that arbitrage funds are the biggest participants in the futures market, and since their strategies depend on thin margins and low-cost execution, even a small rise in transaction costs can materially affect performance.Shenoy posted on a social media platform X (formely known as Twitter) that, “The STT increase is not of major impact to retail players. The biggest players in futures are arbitrage funds. Your arbitrage fund returns will fall by about 0.5% next year due to this increased STT. Also FPIs, who buy stocks in futures because the
In a significant move, the government today proposed removing the capital gains tax exemption on Sovereign Gold Bonds (SGBs) purchased in the secondary markets. Finance Minister Nirmala Sitharaman announced in Budget 2026 that the relief will be given only to those individual investors who have bought it from the Reserve Bank of India (RBI) and hold it till maturity."It is proposed to provide that the exemption from capital gains tax in respect of Sovereign Gold Bonds shall be available only where such bonds are subscribed to by an individual at the time of original issue and are held continuously until redemption on maturity," FM Sitharaman said in her speech today. "It is also proposed to provide that this exemption applies uniformly to all issuances of Sovereign Gold Bonds by the Reserv
