Say Purchase Cost = 100,
Grandfathered Cost = 296.625.
Now when the merger happens, the purchase cost will be 100/0.568 = 176.06
The benefit of grandfathering should not be available as the notification does not cover special situations after 31-01-2017… It is my opinion.
Capital gains should be calculated as normal.
So to take the benefit of grandfathering clause, one should sell the share now and buy in another hand or after 1 day.
Even selling in one exchange & buying in another will do. There must be a movement of shares in the depository account.
“In situations such as mergers, demergers, ESOPs etc. which occur before January 31, the grandfathering benefit will be available even if STT was not paid at the time of purchase. The notification however does not cover situations where such corporate actions happen after January 31,” he said.