Abhishek Securities

Long-term capital gains on sale of listed shares has now been exempt from tax for more than 10 years, since it was implemented in October 2004. The exemption applies in cases where the Securities Transaction Tax (STT) has been paid, and therefore effectively applies to all transactions of sale of listed shares on a recognised stock exchange. In recent years, the scope of the exemption has been effectively extended to a couple of more types of transactions, not by amending the provision governing the exemption, but by bringing the transactions within the net of STT. One such type of transaction is the public offer for sale of shares. A public offer could be of two types (or a combination of these two)—one, an offer where the company issues shares to the public by allotting new shares, and second, an offer made by the existing shareholders of the company (which may be promoters, venture capital funds, private equity funds, or others) to the public of existing shares held by them in ...

At present, listed shares enjoy concessional tax treatment both in terms of holding period and the tax rate, while they, unlike other asset classes, are subjected to the STT. The tax on capital gains on equity shares held in a company listed on a recognised stock exchange and equity-oriented mutual funds is zero if the stock is held for more than 12 months, while gains made in a shorter period would attract 15% tax. However, in the case of unlisted shares, the tax rate is 20% (with indexation) if held for more than 36 months (considered as long-term) and 30% for domestic companies and 40% for foreign companies for holdings less than three years. “The need of the hour is encourage investments into companies (whether listed or unlisted) to meet the capital needs of the aspirational programmes of the government. A contrarian approach would be to bring in parity between listed and unlisted companies and reduce the (long-term period) for unlisted companies from 36 to 12 months, at...

Bharti Telecom Ltd is planning to raise its stake in Bharti Airtel to over 50 per cent through open market purchases, according to reports. Report says that the company intended to acquire stake from Indian Continental Investment Ltd (ICIL) that owns 6.65% stake in Bharti Airtel.  Bharti Airtel Ltd ended at Rs. 324, up by Rs. 3 or 0.93% from its previous closing of Rs. 321 on the BSE. The scrip opened at Rs. 322 and touched a high and low of Rs. 325.3 and Rs. 318.6 respectively. A total of 2492777(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 129515.76 crore. The BSE group 'A' stock of face value Rs. 5 touched a 52 week high of Rs. 452.45 on 21-Jul-2015 and a 52 week low of Rs. 282.3 on 29-Jan-2016. Last one week high and low of the scrip stood at Rs. 334.8 and Rs. 316.15 respectively. The promoters holding in the company stood at 65.62 % while Institutions and Non-Institutions held 25.4 % and 8.93 %. Sandi...

Otis Elevator Company (India) has finalised an agreement with Mantri Developers to provide more than 1,000 elevator and escalator units for the builder's residential, commercial, retail and villa projects over the next few years.  Otis India is a unit of United Technologies Corp. It has the largest elevator and escalator service network in the country, covering about 300 cities and towns with its 80-odd centres.  "Mantri is a well-respected, future-focused developer and we are delighted with this agreement," said Sebi Joseph, president, Otis India. "At Otis, we find that working with the customer allows us to offer solutions that positively impact their business."  In a move to strengthen its presence in the country, Otis India last year announced the expansion of its Bengaluru manufacturing facility, where most units for the Mantri projects will be made. The Bengaluru factory supports Otis focus on local innovation and continued investment in manufacturin...

The Competition Commission of India (CCI) has approved the proposed merger of Sistema Shyam Ltd's operations into Reliance Communications, paving way for the first major consolidation in the intensely competitive sector since 2009. ET had first reported in May last year, that RCom was in talks with SSTL for a possible takeover in an all-stock deal, worth around Rs 4,500-5,000 crore that could give the latter's shareholders a stake of around 10 per cent in the merged entity. Prior to the approval, the Bombay High Court has admitted an application seeking a merger between RCom and SSTL, the telecom unit of Russia's Sistema JSFC, after which the the court had asked RCom to convene a meeting of shareholders on March 8. The deal will give India's fourth-largest carrier access to airwaves in the 850 Mhz band which can be used for 4G services that it plans to start later this year. Moreover, it will be able to extend the validity of its licenses by 12 years in eight high rev...

Thrissur-based Catholic Syrian Bank (CSB), though not a listed bank, reported a net loss of Rs 53 crore in fiscal 2014-15 on a total income of Rs 1,672 crore and capital adequacy ratio of 11 per cent. In the first half of 2015-16, CSB reported a net loss of Rs 41 crore on total income of Rs 814 crore.  It seems that the bad loans of Kerala-based banks have increased significantly over the years. According to latest data, listed banks based in Kerala have total non-performing assets (NPAs) worth Rs 6,024.14 crore. As at December 31, 2014, the value of bad loans was Rs 5,649.27 crore, compared to Rs 5,364 crore recorded on December 31, 2013. Sandip Ginodia , Director   ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

Seven steel majors including a central PSU have participated in the e-auction process to bag Odisha’s Ghorhaburhani-Sagasahi iron ore block with a total reserve of around 100 million tonne, officials said on Thursday. The auction platform is provided by MSTC Ltd while SBI Capital Markets Ltd (SBI Caps), a fully owned subsidiary of State Bank of India, is the transaction adviser for conducting mineral e-auction. The transaction adviser will assist the state government in fixing floor price for the auction. The state government has already formed a committee under the development commissioner for the smooth conduct of mines auction in the state. 

Industry trackers say that the issue arose after representations were made that investment in unlisted companies be treated on a par with those in listed space. By that the contention was that there would be no tax on  investments  in unlisted companies if the investment is held for a year. "The industry wants the government to clarify the law for unlisted shares and explicitly reduce the holding period for unlisted shares from 3 years to 1 year," said Rajesh H Gandhi, partner, tax,  Deloitte  Haskins & Sells."Given that market participants are acutely sensitive to tax policy changes, any review of the policy should be calibrated, backed by a broader medium to longterm policy objective and should follow extensive stakeholder consultation," said Sameer Gupta, partner and leader,  financial services , tax and regulatory. Currently India has a double  taxation  avoidance treaty (DTAA) with Mauritius and Singapore, which effectively means investor...

The Tamilnad Mercantile Bank has been adjudged as the best performing bank under “Atal Pension Yojana Scheme” in the private sector banks category. M Gunasekaran, General Manager, Tamilnad Mercantile Bank Ltd, in a release said Union Minister of State for Finance Jayant Sinha presented the award to Tamilnad Mercantile Bank Managing Director & CEO HS Upendra Kamath at function held at New Delhi on Thursday.  Sandip Ginodia , Director   ABHISHEK SECURITIES We deal in over 60 unlisted companies with 15 years of experience . For latest prices visit :  www.abhisheksecurities.com/unlisted.htm  / call : 09830271248 . Email :  ginodiasandip1@gmail.com

Concerned over the recent volatility in the domestic stock markets, six companies have reportedly put off their initial public offering (IPO) plans. The companies that are looking for stabilisation in markets to launch their IPOs include L&T Infotech, Parag Milkfoods, Catholic Syrian Bank, AGS Transact, Thyrocare Technologies and Bharat Matrimony. These companies are planning to raise a total of over Rs 6,000 crore through their IPOs, according to draft red herring prospectus (DHRP) filed by them separately with the Securities and Exchange Board of India (SEBI). The last month's sell-off in the domestic stock markets weighed heavily on the stock prices of companies that had hit the markets during late last year, with some of them falling by around 20% in a month compared to about 6% decline in the benchmark indices. Some firms might even contemplate trimming their issue sizes either by cutting the price band or by re...

The Bombay High Court has admitted an application seeking a merger between Reliance Communications (RCom) and Sistema Shyam Teleservices, the telecom unit of Russia's Sistema JSFC. The court has asked RCom to convene a meeting of shareholders on March 8, the Anil Ambani-run company said in a release on Monday. RCom plans the merger with Sistema, which operates the only CDMA network in the country, as the first of a series of consolidation exercises.  The transaction will add high data users to RCom's client base and give the company sufficient airwaves to move its CDMA customers and free up existing airwaves for trading. RCom recently paid the Department of Telecommunications Rs 5,384 crore to liberalise airwaves it is currently using for CDMA so that it can trade them with Reliance Jio Infocomm.  The airwaves can be used for 4G LTE technology more effectively than those operators have at the moment, because they are in the 800MHz band, which travels farther than higher freq...