*Game over for #DHFL* @finshots
After many twists and turns, it seems as if the DHFL saga is finally coming to a close. But before we get to the story here’s a quick recap
Back in September 2018, DSP, a mutual fund house offloaded DHFL’s bonds at a discount.
I know you’re not following this. So here’s a nice translation- DSP had loaned out considerable sums of money to DHFL. And then one day there was an epiphany it seems. They no longer wanted to wait for DHFL to pay them back.
So they begged someone else to take the burden off of them by offering a huge discount. They said this was routine. But come on. Who are we kidding right?
When news of the sale spread, DHFL stock crashed 60%🔻.
(1/n) •Domestic company corp tax cut from 30% to 22 % percent if
they don't avail any exemptions or incentives from FY20
• Effective tax for these companies rate 25.17 percent inclusive of all
surcharge and cesses. Applicable for current fiscal
(2/n) *listed companies which have announced buyback of shares prior to July 5 will not be charged with super rich tax
*All the measures announced will give relief of 1.45 lakh crores annually
(3/n) *Roll back of enhanced surcharge introduced in Budget on capital gain arising from sale of equity shares in a company liable for STT .
* super-rich tax will not to apply on capital gains from sale of any security including derivatives for FPIs.
(1/n) Among many things addressed today in Finance Minister's Meet with Press, she addressed there will be development of Credit Default Swap (CDS) Markets in consultation with @SEBI and @RBI RBI. This step was taken following the credit events of IL&FS, DHFL etc in past yr
@sebi@RBI (2/n) Now what is Credit Default Swap (CDS)/ Markets?
CDS is kind of an insurance against a risk of default on a loan by a company. Company – reference entity, default – credit event.
@sebi@RBI (3/n)Why will a seller do that? Coz under such contract buyer will pay a regular amt to seller 4 protection he has bought for his bond, incase of a credit event. Seller will gain incase there is no credit event since he has got regular payment from buyer for his ‘protection’.