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Open Offer Or Open Market Sales?


wealthymatters

If you tender your shares in an open offer, if you have held them for over  a year , you will have to pay 20% capital gains tax with indexation benefit, and 10% tax without indexation .If you tender shares within a year, you will have to pay income tax as per your tax slab.

If shares are sold in the open market after a year, they do not attract any capital gains tax, but if they are sold before a year, they attract 10% capital gains tax.Shares sold via the bourses however are subject to the STT.

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Investing in NCDs


wealthymatters.comA non-convertible debenture is a fixed income instrument where the issuer agrees to pay a fixed rate of interest to the investor. An NCD cannot be converted into equity of the issuing company unlike convertible debentures.NCDs are good substitutes for fixed deposits,especially company deposits.

Debentures are of two types secured and unsecured. The debentures with a “charge” on the assets of the issuer are called secured debentures. So in case of a default by the issuer, the secured debenture holders are paid by selling the assets against which the charge was created. Secured NCDs offer lower interest than their unsecured counterparts. Read more of this post

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