How is buyback treated for tax purpose? Will the entire lot of shares tendered be treated as ‘transferred’? Or will only the gain on shares accepted by TCS be taxed?
Will STT be levied on accepted shares?
@ShubhS9 I am unable to place buyback order.I am getting error message “Error placing order : Order can not be created or modified outside start date and cut off date”
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Working fine for me. Can you please try again?
Just tried and it worked fine…Thanks Shubh !!
Congratulations guys
26% acceptance ratio in retail category
28th March settlement date.
Due to higher participation from retail,low acceptance ratio ,still good profit.
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Just got the contract note from Zerodha 10 shares we taken by TCS from 44 shares tendered to them. The remaining 33 shares are not showing in my holdings and when would they show and when will I receive the amount of the 10 shares. If any one knows, please let me know.
The payment for accepted shares will be credited directly to your primary bank account. This along with unaccepted shares will be credited back to your Demat account on 28th March.
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Thankyou Shubh for the instant reply on this.
I had tendered 27 shares for TCS buyback. Today I got a buyback contract note note from Zerodha that 6 shares have been sold in buyback at Rs 4500 and it would be settled by 28th.
With acceptance ratio of 26%, I thought 7 shares (26/100 * 27 = 7.02) would be bought back by TCS.
Can someone clarify why 6 shares were accepted instead of 7.
Same situation for me… can someone clarify this?
For me, just 5 shares out of 25 shares has been sold.
Debit in a/c ****** for 20-TATA CONSULTANCY-1/- on 28MAR. Got this message from CDSL. Why am I getting a debit message?
TCS shares tendered in the buyback were debited from your account towards the settlement of the buyback. The payment for accepted shares will be credited to your primary bank account. While unaccepted shares will be credited back to your demat account. Both on 28th March.
You will not be able to see these unaccepted shares on Kite/Console until then. The holding will show up once the shares are credited back in your demat account.
Thanks!! So on 28th (or is it 29th?) shares will be available in Kite for any further transaction?
Hi,
I got a contract note from Zerodha on 26-Mar that 1 share of TCS is sold.
Today, I got a SMS and email that 10 shares (shares that I have placed bid and total shares that I have) of TCS are debited from my demat account.
I am confused if buyback of 1 share or 10 shares is done. Can someone pls clarify on this ?
This has been answered a couple of messages above.
The problem here is that number of shares debited from demat account and the contract note is different.
That’s why the confusion
@ShubhS9 any inputs from you will be helpful
As @ShubhS9 mentioned above,
all the shares that you have tendered in the buyback will be first debited from your CDSL demat account.
and eventually unaccepted shares will be credited back to your CDSL demat account.
(agreed, it sounds weird. But, apparently that’s how it is done)
Thank you. This is confusing. Why can’t they just debit the number of shares that they accept as the tendered shares are already on freeze.
As there is a debit and credit to demat account, should this be considered as sale and buy and consider long term capital gains accordingly?