Sebi not in favor of tax incentives for market investments
Sebi is having a relook at incentives that are given to mutual fund companies for going to tier-2 and tier-3 cities.
The Securities and Exchange Board of India (Sebi) on Sunday said it is not in favor of tax incentives for market investments. Sebi chairman Ajay Tyagi said that if financial awareness increases there won't be a need to give incentives for investments, according to a Bloomberg report.
Speaking at NISM Campus in Patalganga, Maharashtra Tyagi said financial education is needed for deepening of capital markets in India. He further said that Sebi is having a relook at incentives that are given to mutual fund companies for going to tier-2 and tier-3 cities.
Underlining the importance of financial education, Tyagi said that financial literacy has become important in the present day context, with many financial products available for investors. Products are also becoming increasingly complex, he added.
Financial education and awareness helps individuals to do planning to achieve their financial goals, understand the risks involved in various financial products, ultimately contributing to their financial wellbeing. Financial education also helps investors to keep away from ponzi schemes, Tyagi added.
Financial education has become even more important due to increase in digital transactions post demonetisation, he said. A number of different ‘app’ and alternative instruments have come-up and more and more options are emerging. It is extremely important to keep pace with the developments with a view to reaping the benefits of technology.
As part of its education initiatives, SEBI has taken Financial Education to about 550 districts in the country with its unique Resource Person Model. More than 50,000 programmes have been conducted by SEBI since 2010 targeting students, executives, women, retired persons, etc. reaching over 37 lakh individuals.