The editorial is very right in saying that by offering sops alone investors will not return to market.The market has been volatile since September 2008 when the financial meltdown began and continued without any sign of recovery.Even now the world economy is in a mess and the chances for an early recovery are remote.STT is non-inflationary in character and it is difficult to pass on to others and hence the grievance from investors and brokers.In fact,Govt should modify STT and should be made different for purchases and sales,retailers and whole salers,brokers and traders,FIIs and domestic institutions etc.STT can emerge as an important regulatory tool and it should contiue.Stamp duty rationalisation is overdue and needs to be expedited.The confidence in market needs a boost and for that the GOVT and SEBI should put on some coordinated efforts.The Govt has to ensure that its fiscal deficit will be contained through improved administration and policy initiatives followed by actions.
from: T.V.Gopalakrishnan.
(This appeared in the Hindu-business Line Dt 30/09/11).
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