@deepakshenoy@GPingleCorpLaws Quick and Dirty: Corps pay more taxes in Case 2 at same issue price strictly on account of higher buy back price. Does that seem fair?
@deepakshenoy@GPingleCorpLaws No worries and thx for the clarification. Lets say they decide on a 20Kcr return to s/h. Div is straightforward so park it aside. However, for buy-backs the higher the buyback price, higher is the "distributed income" (for taxation) i.e. higher is the tax. Correct?
@deepakshenoy@GPingleCorpLaws I think 115QA was initially applicable for unlisted companies. but Finance (No. 2) Act, 2019, the Section 115QA now is applicable for listed companies as well. I might be wrong though
Multi Cap PM's have asymmetrically larger positions in Large & Mid Caps because they offer better risk-reward profiles. By changing allocation norms, you can't engineer value. Fund managers are perhaps better off switching from Multi Cap to Large & Mid Cap by unwinding Small Caps
@sandipsabharwal Hey, can they not instead just change the qualification from multi cap to large & mid cap and close out the small cap positions altogether?
Nifty 50 at trailing PE 23x (second most expensive - behind only South Korea). One would normally expect a period of sharp EPS upswing. How on earth will that happen? How?