Equity leverage will be 2-4X only to avoid excess leverage,but again by applying that Govt will be in tax collection loss.Why will they put axe on their own feet?
@headstrong007
If you see total STT collection from Equity market per year, still it is not a big tax for Government, especially after GST is launched Government is getting huge indirect tax.
Now, they can easily sacrifice some STT to benefit big industrialist(they constant SIP money to the market) and big mutual funds players(banks are also behind them).
See the below news, Govt is getting more tax from indirect ways. This is old news, they even got more after it was published.
https://www.thehindubusinessline.co...-post-gst-economic-survey/article22552449.ece
Add up the extra money Govt already got by not transferring the petrol price benefit to common people in the last 3-4 years! Govt have the luxury.
IMO, not Govt is not putting the axe on their own feet but working on the behalf of some big industrialist, mutual funds, and banks. Govt already made a rule to invest common peoples PF money to risky stock market. With time they want more money flow to the stock market.
Banning the common people to direct entry into the stock market is the easiest way to increase the money flow to mutual funds.
But, people also lose heavily through mutual funds during the market crash, due to the panic the sell at the bottom. In 2008 many people lost huge money through mutual funds too.