India’s capital market industry has put forward a strong case for a comprehensive tax overhaul as Finance Minister Nirmala Sitharaman met market representatives in New Delhi for pre-Budget discussions.

According to sources, the proposals reflect long-standing concerns about liquidity, investor efficiency, and tax parity.

A reduction in Securities Transaction Tax (STT)—especially on cash market trades—topped the agenda. Market participants reiterated that STT on equity cash trades must be kept meaningfully lower than derivatives to restore balance between the two segments and help revive market depth.

The industry also pushed for reforms to buyback taxation, calling for the levy to apply only on the profit component of a buyback instead of the entire amount. Several companies have pointe

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