Basic IPO Grey Market FAQs

What do you mean by 'Subject to sauda ' in IPO Grey market?

Subject to Sauda refers to a type of deal on India's IPO Grey Market.

An investor may sell an IPO Application to a buyer unofficially at a agreed price (Kostak rate) before IPO shares are listed on the stock exchange.

If the deal is referred to as 'Subject To Sauda', the buyer and seller must agree that the deal will only be valid if the seller gets the allotment. The deal is void if the seller does not receive any shares during the IPO process.

A company called XYZ will be launching an IPO at Rs 100 per share. IPO shares are expected to be listed within 15 days. The seller can sell the Retail IPO allocation of Rs 2. lakhs to the buyer for Rs 5000 through 'Subject To Sauda'.

  • A seller who gets an allotment will receive Rs 5000.
  • Sellers who don't receive an allotment will not be paid.

Define IPO Grey Market.

Who is responsible for price determination in Grey market ?

How does selling & buying takes place in Grey market?

How does Grey market works?

Is there any legal authority for Grey market?

How come there is a change in the price of Grey market everyday?

Before applying in an IPO,should IPO investor consider the Grey market premium?

Before the listing of stock, can we sell the stock allotted to us in an IPO?

In an IPO Grey market, where can I know the present rates on premium on a share?

In Grey market,What is Kostak?

how the broker does executes order for preferred customers as for grey market if the stock is not listed?

When selling an application in grey market, do I need to pay taxes?

Who is liable to pay the brokerage for selling shares during grey market transactions?

Explain how does Grey market works in stock market?

Define Grey market premium.

In IPO Grey market what is Kostak rates?

What is the basic difference between Grey market Kostak and Subject to sauda?