NSE Chief Ashish Chauhan Discusses Budget Impact on Market

NSE CEO Ashish Chauhan called the Budget's changes to securities transaction tax and short-term capital gains tax 'minor,' noting these won't majorly impact the market. Chauhan attributed market corrections to investor misunderstanding, praised the fair buyback framework, and highlighted the Budget's focus on employment and fiscal deficit reduction.

India's largest equity bourse, NSE, witnessed significant commentary from its Chief Executive Officer and Managing Director, Ashish Chauhan, on Tuesday. Chauhan described the Budget's alterations to the securities transaction tax and short-term capital gains tax as 'minor changes,' asserting they would not significantly impact the markets.

Chauhan noted that the market's immediate correction following the Budget speech by Union Finance Minister Nirmala Sitharaman was due to investors not fully grasping the implications of these tax changes. Speaking with PTI, Chauhan mentioned that investors had anticipated more significant moves regarding the Securities Transaction Tax (STT) and Short Term Capital Gains Tax (STCG).

He classified the budgetary adjustments as 'baby steps' toward a tax regime that encompasses all personal incomes but welcomed them for facilitating continued capital formation in the economy. On prospective changes in the F&O (Futures and Options) domain, Chauhan suggested that the focus would now turn to regulators.

Increased taxation on STT and STCG is a response to criticism of high derivative volumes, he said. Chauhan also highlighted that the Budget's buyback proposals align India with global markets, providing a fair framework. Moreover, he praised the Budget's efforts to reduce the fiscal deficit to 4.9%, maintain significant infrastructure investment, and generate employment opportunities. On populism, Chauhan remarked that the government largely avoids succumbing to such tendencies.

(With inputs from agencies.)