Basic IPO FAQs

For an IPO,How much tax I have to pay on returns(Capital gains)?

Capital Assets (stock, property and precious metals) that are sold or transferred can be taxable as capital gains for the year in which they occur.

Capital Assets can be divided into two types: long-term and short-term.

When they are held longer than 12 months, shares, debentures, and mutual funds are considered long-term capital assets. They are short-term capital if they are not sold or transferred within 12 months.

Gains on the transfer of short-term and long-term capital assets are subject to different tax rates. Gains from short-term capital assets are subject to regular income tax.

An investor who sells IPO allocation shares within 12 months of IPO Allotment is subject to short-term capital gains. These gains are subject to tax along with regular income, i.e. tax on his salary.


What do you mean by IPO?

By whom the 'Price Band' is decided?

'Date of issue' is decided by whom?

What a registrar of an IPO does?

What is role of Lead managers in IPO?

What does 'follow on Public offering' or FPO means?

What are Primary market & Secondary market?

How can you define the life cycle of an IPO prospectus?

What are the life cycle of an IPO?

what are the basic differences between Book building and fixed price issue

How is Floor price different from Cut-off price for a book - building issue

Differentiate between RII,NII,QIB, & Anchor Investor

Retail investor, I would like to invest more than Rs 1 lakhs in an IPO. What is the best way to invest in the Non-institutional bidders' category? What are the pros and cons of investing in this category?

Is PAN number mandatory for applying in an IPO?

IPO remains open for how many days?

After submitting the application in IPO,what details I should keep?

For an IPO,what is the 'Market lot size' & 'Minimum Order quantity'?

Will I get guaranteed amount of shares if applying for an IPO?

Is investing in IPOs less riskier than in direct stock market?

Can someone apply through more than one application in IPO with the same name?