Saturday, November 10, 2012

Eluthatha Kadiham

Sub: A suggestion for ever booming in Indian Share market. ************* I would like to propose a radical suggestion which may be implemented in trading of shares in Indian share market. If one buys a share of a company in the secondary market, he will automatically become a registered shareholder to enjoy all the profits of the company. But, on the other hand, if one sells without having any share of a company in hand and buys later in the same day he enjoys the benefit of the existence of the company. It is nothing but an unregistered trading as far as the company is concerned. All e-trading come under this category. Without being a registered shareholder of a company, they are benefited by e-trading of that company shares. Such customers of share market should not be treated in bar with regular share holders of the company. They should not be allowed to enjoy the benefit of the existence of the company. Hence the unregistered traders should pay a small percentage of total amount involved to that company. Their contribution will be treated as ‘other income’ to the company. If this contribution is accumulated it will be big enough and the regular shareholders will get more by annual dividend. It will be helpful to have more or non-zero fund under reserve and surplus by companies.It is just like service tax imposed by government to public . Over all a boom in the Indian share-market will prevail forever.

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