Dividend Benefit Buying - Coal India

[saiography]

Don’t fall in to the trap of dividend stripping. Do read this thread first before buying shares of a company for dividend.

What is dividend stripping and bonus stripping? What are the applicable rules in India?

Is it a good idea to buy stocks or units of mutual funds before the Ex-date and sell it immediately after the Record date? This has 2 advantages according to me: I receive dividend which is tax free, as I purchased the shares before the Ex date. The Ex-date price, which trades without the dividend included in it will create a short term loss for me. I could use this short term loss and set off my yearly short term and long term capital gains.