Yes, if you held the shares for less than 365 days in your Demat account, then it is a short-term capital gain and you are liable to pay a 15% tax on your profit.
If you apply for the buyback by submitting your filled tender form to us, then Zerodha will debit the shares from your Demat and transfer the shares to the RTA. The shares will be transferred after we receive your tender form and place your bid.
A bid can be placed only for the shares present in your Demat account. If your held 75 shares and already sold out 45, you only have 30 shares remaining in your Demat. A bid can only be placed for these 30 shares.
You will receive the tender form to your registered email id after the record date of 1 Nov 2017. After that, you have to follow steps similar to that mentioned in the post with Geojit. Do contact their support team once to be sure of what process they follow for the buyback.
@Srinivas, Let say I have 150 shares on record date ie 1st Nov, and I sold entire 150 shares post the record date. I want to participate in buyback. Let’s assume buyback window is from 5th Dec to 20th Dec. By when I have to buy shares to participate in buyback tender offer.
If you held 150 shares in Demat as of record date of 1 Nov, then your buyback entitlement will be calculated on these 150 shares. To participate, you have to buy the shares back into your Demat, tender the shares for buyback using the buyback form and allow Infosys to buy it back.
Effectively, you will be eligible for buyback of shares equal to your buyback entitlement which will be mentioned in your tender form. But yes, you can tender the entire quantity held by you in Demat as of record date. Read this.
Suppose I hold 300 shares of Infy my demat account the value of which at present is more than 2 lacs. So
If an individual can tender any no. of shares ( irrespective of them being accepted or not by the company), then what is the difference between a retail investor and HNI investor?
How will the company determine in which category do i fall - Retail or HNI - if the total value of shares held by me is more than 2 lacs?
Since 15% of the buyback is reserved for retail investors, what do I need to do to make sure that I qualify for this retail quota? Do I need to sell shares from my account to reduce the total value of Infy shares in my portfolio to fall below or equal to 2 lacs as on Record date?
What differentiates a retail and HNI investor is the holding value, as you’ve mentioned. If a shareholder has above 2 lacs worth of Infy shares as of Record date, then he is an HNI investor. The difference is the entitlement ratio which depends on the HNI shareholding pattern, the share price as on record date and the quota set aside for HNI investors which i’m unaware of.
That’s correct. If you have Infy shares worth over 2 lacs as of Record date, then you are an HNI investor. If it’s less than 2 lacs, then you are a retail investor.
Yes, to qualify as a retail investor to be eligible for the 15% retail quota, you have to ensure that your holding value in Infy is less than 2 lacs as of Record date of 1 Nov 2017. So you have to sell out the additional shares on 30 Oct or before to enable this.
If I sell some stocks on Monday and get my holding below 200000 and assuming that the value doesn’t rise above 200000 till the record date, will I be eligible for the reserved 15% buyback category? Or should I sell them today to make this happen?