PTI New Delhi

Representatives of capital markets on Tuesday pitched for reductions in transaction tax and measures to deepen the financial sector in the upcoming Budget. Suggestions regarding improving efficiency of capital markets and increasing capital market inclusion were also made during the pre-Budget meeting with Finance Minister Nirmala Sitharaman, sources said. Representatives of the sector sought lower Securities Transaction Tax (STT) on cash market trade as compared to derivatives, sources said.

This was the fourth pre-Budget meeting between the finance minister and representatives of capital markets, including BSE, Multi Commodity Exchange, Association of Mutual Funds  in India, Association of Registered Investment Advisers, and Commodity Participants Association of India. Capital markets facilitated resource mobilisation of Rs 14.6 lakh crore in FY25, marking a 33 per cent increase over the previous year.

The use of a broad spectrum of financial instruments -- ranging from equity and debt-to-real estate investment trusts (REITs), and infrastructure investment trusts  (InvITs) -- highlighted the evolving and adaptive financing strategies of corporates and infrastructure entities. However, equity and debt segments alone accounted for Rs 14.2 lakh crore, reaffirming their central role in supporting capital formation and propelling economic development.