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Grandfathering effect on Demerged shares

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  • Grandfathering effect on Demerged shares

    Hi,

    I have a query related to grandfathering effect on demerged shares.

    As an example, I have 50 nos. Arvind Ltd purchased on 13/01/16.

    They have demerged to Anup Engg- 1no. & Arvind Fashions- 10 nos on 29/11/18 which have been listed on 1/3/19 & 8/3/19 respectively.

    Now, if I sell Anup engg or Arvind Fashions, what should be the purchase date considered? Should it be the date on which Arvind Ltd was purchased i.e. 13/01/16 or should it be the date on which I have received the shares in my account (record date) i.e. 29/11/18?

    If I use the date 13/01/16, then there will be long term capital gains, however if I consider the purchase date as 29/11/18, then there will be short term gain. Kindly confirm the purchase date of demerged shares.


    Can someone also please confirm what will be the purchase date of Bonus shares as well using similar logic?

    Regards,

    Tanmay

  • #2
    Dear Tanmayvg,

    For demerged new shares, the date of purchase is that of parent company if you chooses the automatic option, for bonus, the date of purchase is date of issue of bonus shares.

    Please refer the forum link:
    https://forum.mprofit.in/forum/gener...thering-clause

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