Frequently Asked Questions

By listing onn BSE SME , What will be the capital gain tax benefits?

Listing on BSE SME can bring you enormous tax benefits. Unlisted shares can attract short-term capital gains tax of up to 30%, and long-term capital gains tax of 20%. Listed securities have a 15% STCG and a nil LTCG tax, …


Onn SME Platform, what is the annual Maintenance charge?

Annual Fees are Minimum Rs. 25,000, or 0.01% full Market Capitalization(Highest among them). The base of calculation for Market Capitalization is the average price on March 31st or last trading day in the financial year.


Is there any listing fee for SME platform?

Yes, there is a one-time fee for the listing of Rs. 50,000/-


For getting listed on SME exchange, does IPO Grading a compulsion?

No, It's not compulsory.


To get listed on SME exchange , what are the requirements?

For the company to be listed on the SME stock exchange, its post-issued capital should not exceed Rs. 25 Crores. SME Exchange-listed companies are granted to migrate to Main Board after meeting the listing requirements.


Distinguish between mainline IPO & SME IPO.

Companies that have a minimum post-issue capital of Rs 10 crores may raise funds to be listed on the NSE and BSE exchanges via Mainboard IPO. SME IPO is open to companies with minimum post-issue capital in excess of Rs …


What does SME exchange mean?

SME Exchange is a stock exchange that trades shares of small and medium-sized enterprises (SMEs), who otherwise may have difficulty getting listed on the main exchanges.


Briefly explain the history of SME IPO or SME platform in India.

We witnessed the formation of Over The Counter Exchange of India in mid 1990's. It was also known as OTCEI back then. We also witnessed the premature death of this exchange, as it failed to get the necessary support at …


What is the meaning of SME IPO in India ? What are some criteria about it ?

Indian Economy is dominated by small and medium-sized enterprises (SMEs). They employ more than 40% of India's workforce and account for around 45% of India's manufacturing output (as per Dec 2014). India's SMEs are very productive due to their small …


Is there any risk as investor in IPO Funding ?

Yes, there is risk involved as investors may be required to take on significant losses when investing in IPO Funding. Here are a few examples of situations where IPO Funding can be risky: Investors can either pay the lender to …


Does an investor need a guarantor to receive IPO funding ?

An investor does not need a guarantor in order to receive IPO Funding. Notice: To operate the applicant's demat account, the person taking the loan must sign a Power of Attorney (PoA). The lender can sell the holding in order …


What is the interest rate on the loan of IPO ?

There is no fixed rate. It is dependent on many factors, including the IPO, the risk involved in the IPO and expected oversubscription, expected pricing premium, market state, and many other factors.


What is the term of IPO funding ?

IPO funding is a short loan that is typically given for between 2 and 3 weeks. Interest is usually charged on a daily basis on funding. Please note that IPO Financing can only be used for a specific IPO.


How much I can get in IPO funding from bank ?

According to RBI guidelines, banks can lend up to Rs 10 Lakhs to applicants for IPO. The IPO, the expected oversubscription, expected listing price, market state, and other factors will all affect the amount of the loan.


Why should a person take loan for IPO funding ?

The full amount of an IPO application is temporarily blocked for approximately two weeks. The issue may be popular and the applicant will only receive a portion of the application. This is the best way to maximize your earnings through …


What is IPO funding in India ?

IPO funding is a short-term loan that banks and financial institutions offer to investors to help them finance their Initial Public Offering (IPO) applications. Investors who wish to apply for equity shares in an IPO, but don't have the funds …


By using a joint bank account ,can I open a trading account ?

If the joint bank account has either survivor or one of the signatory methods, then you can open trading and demat accounts both. The signatures of the two holder(s) are required to sign the cheque.


Can a person have Two trading accounts legally ?

You can legally have multiple stock trading account, but each must be with a different broker. You cannot have more than one trading account at the same broker. Similar to the above, an individual may have multiple demat accounts. However, …


What are the differences between per executed order and per trade brokerage ?

Both are the exact same. These terms are used to describe the brokerage fee for flat fee discount stock. These terms are also known as 'per executed orders'. Example: 5paisa, a discount stock broker, charges flat Rs 10 for each …


How power of attorney is used by Stock Brokers ?

A power of attorney is a document that gives legal authority to your stockbroker for your account to be operated according to the instructions in it. We use power of attorney every time you sell shares to debit your demat …