Frequent share sales coinciding with price peaks and big dividend demands even when cash is short threaten the interests of the mining giant and its investors.
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No matter how good a business, overpaying for a stock negatively impacts returns. Saurabh Mukherjea’s Marcellus is only the latest example of the perils of forgetting this timeless lesson.
Picking Zomato and Jio Financial Services for inclusion in the benchmark index is part of a larger trend where NSE opts for expensive stocks. Meanwhile, cheaper Chinese equities beckon investors.
A study by SEBI highlights how several companies have increasingly been using royalty payments to related parties and scrounging on dividends to investors.