High Premia

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If the government does not want to restore the pricing formula, then atleast it should mop up profits from high premia by charging wealth tax on share premium upto 4 to 6 per cent. The premia should also be charged in the year it was issued upto 25 to 40 per cent over the reasonable price (formulated under guidelines similar to the CCI formula).
First Published: Nov 07 1996 | 12:00 AM IST