The government obviously noticed that it was losing tax revenues through this method and hence decided to aggressively curtail the dividend stripping in stocks. The Union Budget in 2004 introduced a new proviso that this facility of write-off will only be permitted if the mutual fund units are held for a minimum period of 3 months prior to the dividend record date or 9 months post the record date. This has substantially reduced the interest in dividend stripping. Of late, SEBI has been investigating cases where investors had invested huge monies with prior knowledge of the dividend record dates. SEBI and the Income Tax department have been keen to curb this practice as it gives an unfair advantage to certain investors and also because it takes away a chunk of the tax revenues of the government.