In a bid to broadbase retail participation in stock markets, the Department of Disinvestment (DoD) has suggested tax incentives for small investors to invest in the equity market. A Tax incentive would attract retail investors to equities of both public and private companies, widen the retail investor base in the securities markets and ensure financial inclusion.The DoD has been long trying to attract more retail investors into the equity market so that they can own a pie in the government companies as and when PSU stake sales happen. Encouraging retail investors would ensure flow of savings into domestic capital markets which would improve its depth.