Finance Minister Arun Jaitley has clarified that the government does not have any intention to target long-term investors in the country.

Jaitley said that Prime Minister Narendra Modi's statement on tax was misunderstood by some sections in media.

"PM's speech yesterday with regard to all sections including market players contributing to the national exchequer has been misinterpreted in some parts of media," Arun Jaitley said.

Jaitley said that due to misinterpretation of PM Modi's statement some people "started speculating that this is indirect reference to fact that there could be long-term capital gains on security transactions."

READ| Modi at Raigad: Note ban for long term gain; aim is to benefit villages not Dalal Street or Lutyens' Delhi

Speaking at the inauguration of the National Institute of Securities Markets (NISM) campus in Maharashtra, PM Modi said, "Those who profit from financial markets must make a fair contribution to nation-building through taxes."

WATCH:

"For various reasons, the contribution of tax from those, who make money on the markets has been low," Modi had further said.

Modi also said, "To some extent, the low contribution of taxes may also be because of the structure of our tax laws."

READ| Demonetisation is a war on black money; wrongdoers must note, govt has changed: PM Modi

Many interpreted Modis statement as hint to introduce a long-term capital gain tax in the upcoming budget.

"This interpretation is absolutely erroneous. Prime Minister had made no such statement directly or indirectly," Arun Jaitley clarified.

There is no opportunity for anybody to reach such a conclusion because this is not what the Prime Minister said nor is it intention of the government as reported, Jaitley asserted.