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POSTED BY ON October 21, 2010 8:29 am COMMENTS (2)
Hi All,
I am hearing lot about selling the IPO applications in grey market even before the issue is listed. How does this work and is it legal?
In most of the IPO the grey market premium is good and I think its better to sell the appplication in grey market and get the 2-3K thats cool 2-3% return for 20 days instead of waiting for the stock to list and expect everything to be fine on that day like Dow shd be up, RBI shouldn’t increase interest rate, Ben Bernanke should keep quiet etc……
I hail from Chennai. Do you guys know anyone who deals with this in Chennai? Thanks.
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@Sohil,
I am as confused as before…. when u say they will use my account and will apply and sell. Does it mean I have to share my id and ps with them ( I am not going to do that) and in the second if I am doing it by myself what is the sure that I will be paid in case if it list below the price.
Its just that say your Dp is say angel broking.
What they will do is they will use your account to apply and sell the stock once it lists.It might be like this 1 lakh applied amount and say its sure he will get shares of same amount.He will decide ill pay you say 4% on the spot any how whether it lists high or low.
Your 4k is safe.If it lists at say doubles the amount like career point all profit goes to the dp if at lost anyways its not your money and sureshot you will get your 4k amount.
Also sometimes dp comes to know u already got the shares and he might deal with you the grey way like ill pay you grey price but ill sell it once it lists.