Budget 2026: How New Tax Rules and Market Reforms Impact 360 ONE WAM

Union Budget 2026: A New Trajectory for Wealth Managers

Union Budget 2026, presented by the Finance Minister, has laid out a strategic roadmap focused on deepening India's financial markets, rationalizing the tax structure, and attracting global capital. For a leading wealth and asset management firm like 360 ONE WAM Ltd., which caters to high-net-worth individuals (HNWIs) and institutional clients, these announcements present a mix of significant opportunities and minor challenges. The budget's emphasis on structural reforms in the financial sector is set to directly influence the company's growth, product offerings, and client advisory services.

Expanding the Horizon for Foreign Investment

A standout announcement for the wealth management industry is the proposed enhancement of the Portfolio Investment Scheme (PIS). The budget proposes to increase the investment limit for an individual Person Resident Outside India (PROI) in listed Indian equities from 5% to 10%. Furthermore, the overall investment limit for all individual PROIs is set to be raised to 24% from the current 10%. This is a direct and powerful catalyst for 360 ONE WAM. It significantly expands the addressable market for managing foreign portfolio investments, allowing the firm to attract more capital from its overseas clients and non-resident Indians. This measure, combined with a comprehensive review of the Foreign Exchange Management Act (FEMA) rules to create a more user-friendly framework, signals a clear intent to boost foreign capital inflows, a core business area for the company.

Capital Market Deepening Creates New Asset Classes

The budget introduced several measures aimed at strengthening India's capital markets, particularly the corporate bond market. Proposals to introduce a market-making framework, derivatives on corporate bond indices, and total return swaps will enhance liquidity and depth in the debt segment. For 360 ONE WAM, this is a welcome development. It allows their wealth managers to offer a more diversified portfolio to clients, moving beyond traditional equity investments. A more robust bond market provides stable, long-term investment products, which are crucial for effective asset allocation and risk management for HNI portfolios. The added incentive for municipal bond issuances further broadens the spectrum of available fixed-income instruments.

Direct Tax Proposals: Opportunities in Compliance and Advisory

The direct tax proposals in Budget 2026 bring both opportunities and considerations. The introduction of a one-time, six-month foreign asset disclosure scheme is a major opportunity. This allows certain taxpayers, like young professionals and relocated NRIs, to declare previously undisclosed overseas assets up to a specified limit. 360 ONE WAM is perfectly positioned to provide advisory services to clients wishing to utilize this scheme, potentially bringing these newly declared assets under its management umbrella. Additionally, the reduction of the Tax Collected at Source (TCS) rate on overseas tour packages and remittances under the Liberalized Remittance Scheme (LRS) for education and medical purposes simplifies transactions for clients, improving the ease of doing business.

The Impact of Increased Transaction Costs

On the other hand, the budget proposes an increase in the Securities Transaction Tax (STT). The STT on futures is proposed to be raised to 0.05%, while on options premium and exercise, it is set to increase to 0.15%. For a firm like 360 ONE WAM, which noted higher transactional and brokerage income in FY25 driven by capital market opportunities, this is a key development. The higher STT will increase the cost of trading in the derivatives market, which could potentially moderate trading volumes among active clients and slightly impact the firm's transactional revenue stream.

Key Budget 2026 Announcements for 360 ONE WAM

Broader Economic Push Supports Wealth Creation

The government's continued commitment to public infrastructure, with a proposed increase in capital expenditure to ₹12.2 lakh crores, reinforces the outlook for sustained economic growth. A strong, growing economy is the primary driver of wealth creation. This macro-level stability and growth directly benefit the wealth management sector by expanding the pool of domestic wealth and creating more HNI and ultra-HNI clients who require professional financial management services.

Strategic Outlook for 360 ONE WAM

In the wake of Union Budget 2026, 360 ONE WAM's strategy will likely focus on capitalizing on the new avenues for growth. The firm will need to enhance its offerings for non-resident clients to leverage the increased PIS limits. Its advisory division has a clear opportunity with the foreign asset disclosure scheme. While the STT hike presents a minor headwind for the brokerage arm, the overarching theme of the budget is pro-investment and pro-growth. The establishment of a high-level committee to review the banking and financial sector also indicates that the regulatory landscape will continue to evolve, requiring firms like 360 ONE WAM to remain agile and adaptive.

Conclusion: A Budget of Opportunities

Overall, Union Budget 2026 is largely positive for 360 ONE WAM and the broader wealth management industry. The measures to attract foreign capital, deepen domestic debt markets, and provide compliance opportunities outweigh the marginal increase in transaction costs. The focus will now shift to the fine print and timely implementation of these proposals, which hold the potential to significantly enhance the firm's assets under management and solidify its position in India's growing financial landscape.