https://www.taxtmi.com/news?id=30932 The document defines Grey Market Premium (GMP) as the per share premium at which IPO shares or applications are traded informally prior to listing. It describes two primary mechanisms: pre listing trading of allotted shares (with settlement by profit/loss or GMP and possible Demat transfers) and resale of IPO applications (with premium settlement if allotment fails). GMP is calculated as the premium per share times the number of shares, is driven by demand, and functions only as an informal indicator; grey market activity is unregulated and entails significant counterparty and market risk. en-us Tue, 21 Jan 2025 14:31:02 +0530 Tue, 21 Jan 2025 14:31:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=30932 The document defines Grey Market Premium (GMP) as the per share premium at which IPO shares or applications are traded informally prior to listing. It describes two primary mechanisms: pre listing trading of allotted shares (with settlement by profit/loss or GMP and possible Demat transfers) and resale of IPO applications (with premium settlement if allotment fails). GMP is calculated as the premium per share times the number of shares, is driven by demand, and functions only as an informal indicator; grey market activity is unregulated and entails significant counterparty and market risk. News - Tue, 21 Jan 2025 14:31:02 +0530 https://www.taxtmi.com/news?id=30932