New Delhi, Oct. 13 -- SBI Research has called for changes in equity taxation, greater clarity on tax rules for external commercial borrowings (ECBs) and faster repatriation of export proceeds to attract foreign capital inflows, saying the Reserve Bank of India's measures to support the rupee have limits.

In its latest report, SBI Research suggested encouraging longer-term equity investments by considering a holding period of two to three years alongside the removal of long-term capital gains tax on equity. It said such measures could help attract incremental inflows amid sustained foreign investor withdrawals.

"The Government must seriously look into anchoring hot money flows into equity segment by extending the holding period to say 2-...