More and More share buy-backs will now be visible! TCS has announced a buy-back, Wipro is about to announce, and many more will follow. This is obvious – the arbitrage between a 43% tax vs a 10% capital gains!
One more arbitrage that is likely to happen is that some smaller Amc will launch AIF – which will hold the shares of 10-12 promoters with the understanding that they will do a tax arbitrage – all the dividends will be given as capital gains.
Another thing that will happen is that more Mutual funds will launch “Dividend Yield” schemes – a lot of shares like Coal India, Ntpc, etc. are available at attractive yield rates -what say?
Just these 3 points – too big for a tweet, hence a blog.
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