Paytm buyback communication from NSE for intraday trades

So i got this odd mail from NSE
"Please find enclosed details of your sale trades in the security/ies as mentioned in the attached file (traded value is quantity traded multiplied by trade price) for 17-JAN-2023 matched with the buyback orders of the company. You may like to ascertain your eligibility for Income Tax exemption as per Income Tax Act 1961. "

I had an intraday trade in this and paytm bought only a small portion of what i sold, so not worth the trouble. But just curious, is there any taxation impact on an intraday trade like this ? Seems unlikely, NSE probably does not check if the trade was intraday.

First instinct after reading the mail was that i had somehow bought this thing into demat :slight_smile:


What does this mean?

Say i sold 100 qty. Of this say paytm bought 5 qty as part of their buyback. Something like that.

Because they bought, i got mail from nse about it with info on qty bought and apparently we have tax concessions for this but probably (I am assuming) does not apply to business income from intraday. Mail was confusing to me initially, also had to check if sender email was genuine.

So you trading in Paytm in the time of their buyback?

I am trading every day, system does it. It just happened that what i sold, some of it, was bought by paytm as part of buyback. stock fell nicely :slight_smile:

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So Paytm came on your scanner, and you traded in that, at the time of its buyback?

Doesn’t you system have a condition as to not look at stocks when there are buybacks kind of things, or there will be volume and volatility on those days, so those days are also opportunities, so part of the system?

paytm has a buyback active, they can buy whenever they want, how much ever they want. Normally we are not aware of who is at the other side of the trade, But here NSE informed me, thats all.

You need to test what works or not instead of assuming what we should or not do. Volume and trending volatility is good. pin pong volatility not so good ( for me). System dont care for any of this, results too. Just take your trades. That is how it was backtested too. Keep it simple. Now if you can prove that X scenario is bad for trading, then yes dont trade then.

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