#DDT impact only on promoters and #hnis in monetary terms is not large but the signaling and sentiment impact is larger. A quick short thread on listed #equities ( will add more actual data instead of ballpark nos ).
1) total market cap of indian stocks = 150-160 lakh crores. Exact no as per bse market 153,04,724 crores. 2) 10% of that #marketcap is #PSU companies. Most of these companies at 5% yield or more 3) The dividend yield of #nifty500 has been in a range of 1-2% again #psus majorly
4) Consider 10% of the total market cap of india doesnt pay much dividends. 5) Left with a market cap of 120 lakh crores and 1% yield. 6) total dividends given a year say 1.2 lakh crores. 7) Out of this 50-60% of holding is with promoters rest 30% with foreign and domestic insti
8) The dividends in hand of institutions is not impacted but rather positively impacted, the major hit is on the 10% holding by individual investors and 50-60% by promoters 9) If #promoter holding is through #pvtltd, #foreignentity , #trust , #holdingcos it is not in 42.7% tax
10) consider half of #promoter is through above structure. Now left with 20-30% of promoter and 10% of individuals. Around 30-40% of the 1.2 lakh crore div kitty impacted no is approx 50000 cr and and extra tax on it. For a shareholder friendly promoter buyback is better again
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10 Most Interesting Videos on the CFA Society India Channel.
Take your time and go through them. Would recommend attending the physical events too.
@CFASocietyIndia
1) Brave New World | Ritesh Jain, Co-founder, Pinetree Macro.
He spoke about the liquidity way of investing, Tracking the global liquidity flow across past decades, how liquidity impacts economies, market returns based on liquidity.
2) Dimensions of Mistakes in Investing |
Utpal Sheth, CEO & Senior Partner, RARE Enterprises. He spoke about importance of overcoming natural instincts in investing, focusing on the long-term strategic picture, and sizing bets to match one's conviction.