New Delhi. Nikhil Kamath Advice To Retail Investors: The Union Budget is about to come and the Indian stock market is continuously moving upwards for the past several days. Zerodha co-founder Nikhil Kamat has said some important things at such a time. He has asked retail investors to be careful at this time. Nikhil has given his opinion on many other points besides this.
Nikhil Kamat said that unlike the recent days, market returns can be in a different way. You should do your research and enter the market for long term investment. He advised retail or small investors that you have to be selective in choosing any stock.
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Soften rules for listing abroad
Several companies and their advisors have demanded changes in the existing rules from the government to allow unlisted Indian companies to be listed abroad. The government had announced in 2020 that it would implement rules allowing companies to list directly on foreign exchanges.
Nikhil Kamat, however, feels that instead of looking at the rules for listing abroad, there is a need to ease the criteria for listing in India, while tightening the penalties for violation of laws. He said, companies in India have to wait a long time before getting listed and there are many hurdles in it. But once listed, if a company violates the laws, then the penalty for that is very less. This may harm small investors.
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What do you need from the budget?
Kamat wants Finance Minister Nirmala Sitharaman to abolish the Securities Transaction Tax (STT), as both Long Term Capital Gains (LTCG) and Short Term Capital Gains (STCG) are applicable. He said that if the government wants to keep STT, then it can consider removing Tax on LTCG on Long Term Capital Gains.
Nikhil Kamat said in an interview to ETMarkets.com, “I would say that the increased leverage through STT in terms of trading can offset the removal of tax on LTCG.” Kamat said that the tax reforms around STT and LTCG will greatly benefit the economy.
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Better talk about cryptocurrencies in the budget
Kamat said that the cryptocurrency bill that the government is bringing will probably solve most of the issues around the asset class. But if it is brought into the budget, it will be clear how the government will recognize cryptocurrencies. Meaning about the use of cryptocurrencies and how tax will be levied etc.
Tags: budget, Share market, stock market