A 0% short-term capital gains tax to pull in money into stock markets
How disenchanted small investors are with equities and bonds is clear from the fact that investments by households, in shares and debentures, actually contracted by some R6,500 crore in 2011-12 , after increasing by R44,800 crore in 2009-10. While the bulk of household savings, in a country like India, will always flow into into bank deposits, it is unfortunate that investments into bonds and equities can be negative. Some of this has to do with regulation; the ban on entry loads, in August 2009, virtually killed the mutual fund industry leaving agents with little incentive to push these products.
So while the rest of the world rode the rally in the Indian market — the Sensex hit a life-time high in November 2010 — investors at home sat it out giving up a fantastic return
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