If government really want to support retail investors, then don’t give speeches about DII saving the market.
Do something that actually shows up in their P&L
Reduce STT.
Reduce STCG.
Reduce LTCG.
DII buying Rs 5,000 crore while Nifty falls 360 points isn’t exactly retail protection.
It means domestic money is absorbing the selling pressure while retail SIPs keep flowing into the market and investors still pay taxes on the way in, on the way out, and STT on every transaction.
government said, “We don’t need FIIs.”
Fine.
Then stop treating domestic investors like an ATM.
The current model looks simple:
FII exits.
DII absorbs.
Retail funds the absorption.
Government collects STT + STCG + LTCG.
And the speech calls it a “shock absorber.”
If domestic money is truly the backbone of Indian markets, stop taxing that backbone like it’s a luxury.