Narayan Paga, Dharawad

STOCK MARKET NEEDS INCENTIVES During the last year the investors in the stock market have suffered huge erosion in the value of their investments in stocks. The BSE Sensex has tanked from an all time high of around 21000 to a low of around 16000 causing severe losses to investors. There is an urgent need to provide some incentives to perk up the stock market. A vibrant stock market is the need of the hour particularly in view of the recent recession the country is trying to overcome. Besides there is no level playing field as far as the Foreign Financial Institutions [FII] and Indian Mutual Funds as well as individual retail investors are concerned as far as Capital Gains Tax is concerned. While FIIs are not liable to pay any Capital Gains Tax all others have to pay the tax @10%.This anomaly also needs to be rectified. Taking all these factors into consideration the Finance Minister should abolish the Capital Gains Tax all together. Similarly the most unpopular and tedious Securities Transaction Tax should also be abolished. These measures will surely revive the stock market and help in resurgent industrial growth through which we can fight the menace of recession effectively.

NARAYAN PAGA. BSc (Agri), CAIIBI.
Ex-Chairman (o),
Varada Garmin Bank.
Ashirwad, 68-A, 1st Main Road,
Rani Chennamma Nagar,
Dharawad-580001, Ph (0836)2771920
narayanpaga@gmail.com
PROFILE: I have been investing in stock markets since 1983.I have been a long term type of investor. I have been closely watching the developments in the stock markets, both ups and downs. Some of my investments have given me very handsome returns over longer period of time. I also offer friendly advice to my friends and relatives based on my personal experience and my study and analysis of individual stocks.