08 March 2008
Anil Ambani gave his 2.6% stake in Rpower to REL shareholders. Would this transaction attract Capital Gains Tax? If yes,Why & if no then Why? Also can we include the term "Bonus",in the above case,with voluntary transfer of shares?
08 March 2008
THE COST OF ACQUISITION OF BONUS SHARES IS TREATED AS -NIL-IN THE HANDS OF SHAREHOLDERS WHICH IS PUBLIC IN THIS CASE. THE PROMOTERS OF R POWER ARE NOT GETTING BONUS SHARES. WE BELIEVE R POWER DECLARED BONUS SHARES OUT OF SHARE PREMIUM COLLECTED BY THE COMPANY.(SEC 78 OF CO'S ACT) UNDER SEC 2 (47)OF IT ACT, ANY SALE,,EXCHANGE, EXTINGUISHMENT OF RIGHT OR RELINQUISHMENT OF A CAPITAL ASSET IS TRANSFER AND TRANSFER OF A CAPITAL ASSET AT A GAIN ATTRACTS CAPITAL GAINS. IF ANIL AMBANI OR FOR THAT MATTER ANY TRANSFEROR TRANSFERING HIS SHARES AT THE ORIGINAL COST OF ACQUISITION IS NOT LIABLE FOR CAPITAL GAINS. I REQUEST OTHER MEMBERS TO CONFIRM OR ADD THEIR VIEWS SINCE THIS IS AN INTERESTING QUERY. R.V.RAO
08 March 2008
SEBI REGULATIONS ON LOCK IN OF SHARES ALLOTTED TO AND APPLICABLE TO PROMOTERS QUOTA OF SHARES NEEDS TO BE CONSIDERED .OTHERWISE IT IS VIOLATION OF SEBI REG. PROMOTERS IN ANY COMPANY ARE ALLOTTED SHARES BY A COMPANY AT VARIOUS STAGES LIKE ON INCORPORATION OF THE COMPANY,TIME TO TIME BEFORE THE PUBLIC ISSUE AND DURING PUBLIC ISSUE.( PREF. ALLOTMENTS TO PROMOTERS AND OTHERS POST PUBLIC ISSUE WHICH IS AT A FAR LATER STAGE AND A NONISSUE HERE) BESIDES MANADATORY HOLDING OF CERTAIN % OF SHARES BY PROMOTERS IS MANDATORY(POST PUBLIC ISSUE) WHICH IS IN ADDITION TO NONDISPOSAL OF SHAREHOLDING UNDERTAKING GIVEN BY PROMOTERS -WHICH IS INSISTED BY FIs/BANKS WHILE SANCTIONING TERM LOANS AND OTHER FUND/ NON FUND BASED LIMITS TO INDUSTRIAL UNITS IN INDIA. AM SURE AMBANI BEING AN EXPERIENCED AND A DEFT HANDLER MUST HAVE CONSIDERED THE PROS AND CONS OF ALL THESE MATTERS WITH EXPERTS LIKE OUR CA CLUB AND OTHER PROFESSIONALS. R.V.RAO
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