Corporates resort to capital restructuring to avoid paying higher taxes

As an immediate effect of the tax reform, the markets saw top investors and corporates restructuring their shareholdings. Leading the band, Reliance Industries (RIL) restructured its shareholding worth Rs 1.3 lakh crore within promoter entities.
  
Following this move, Aurobindo Pharma also transferred promoters' shares worth Rs 13,200 crore to a family trust. Further, investment mentor Shivanand Manekar also undertook restructuring of his shareholdings.

Corporates undertake capital restructuring which involves alteration of debt and equity combination of a company's capital structure. The restructuring has come in handy for companies in an attempt to nullify the affect of higher corporate taxes on their net profits.