Generally, a small set of individuals runs the grey market stock, and the deals are based on the mutual trust of individuals. The trading done in the grey market stocks in India is legal and unofficial. The trades that have been carried out cannot be settled until the official trading commences.
In India, trading in the grey market stocks is a legal and unofficial way of trading. All the trades carried out through the grey market can be only settled after the official trades commence.
Like the black market, the grey market is legal, usually referred to as a dark market or a parallel market. But it entails the sale of commodities through an unconventional market. Typically, producers of goods sold at markets like these do not intend for their goods to be sold there.
One of the main reasons for the strong response was grey market premium or GMP. Grey market, as the name suggests, is an unregulated and unauthorised market place where shares are traded even before they are listed on the main exchanges. The deals, though not on exchanges, are not illegal.
How IPO Grey Market Works | What is Grey Market & Grey Market Premium by Finnovationz
Why is grey market cheap?
All goods sold on the gray market were supplied and sold at different prices without the approval of the official brand of those goods. The characteristic of this market is that the original goods are sold at much lower prices. Due to the price discrepancy, this market is also known as a parallel market.
What is the Grey Market? Equities before their listing on exchanges like NSE and BSE are traded unofficially and unregulated through the grey market. However, these unregulated transactions are not considered illegal.
Essentially, grey market goods are authentic products ending up where they're not supposed to be. Ricardo: So a counterfeit good is a fake product, as Nathan explained. So the product itself is not genuine. In the grey market case, the product is authentic.
The gray market is an unofficial one but is not illegal. The term “gray market” also refers to the import and sale of goods by unauthorized dealers; in this instance as well, such activity is unofficial but not illegal.
What is a Black Market? A black market refers to a marketplace or system of exchange that subverts official government regulations. Often referred to as the underground economy, it is economic transactions that are illegal or are non-compliant behaviors within a set of rules or laws.
Amazon allows gray market listings in categories like camera equipment. There is nothing illegitimate about gray market camera gear, it is generally still sold by authorized retailers. It is just not gear authorized to be sold in this country. Nothing illegal about it.
Former Research Moral and Political Sciences at Academy of Athens (1987–1990) Author has 428 answers and 464.5K answer views 1y. A Rolex “Grey” dealer is unauthorized from the Rolex watch company to sell new Rolex watches, but through their contacts or friendships with authorized Rolex agents, they buy new watches.
Not to be confused with the black market, which illegally sells counterfeit branded goods, the grey market has been defined as “a market where the product is bought and sold outside of the manufacturer's authorized trading channels.”
The black marketing always leads to illegal activities. It is an activity which is confronted in front of tax authorities. In simple language if we are buying goods from the market, and the price of those goods is below the market price then it is called as Black marketing.
Conclusion. Forex and currency trading in India is legal but failure to adhere to authorised brokers or permitted currency pairs is a penal offence under FEMA. If you are interested in online forex trading in order to make your portfolio a diverse one. make sure you check the broker's credentials.
Forex trading is not illegal, but SEBI and RBI highly regulate it. You can only trade in four currency pairs with the INR as the base or the quote currency. You also need to use a SEBI-registered broker or an authorised dealer to trade legally in forex in India.
How can you buy and sell shares in the grey market? To buy shares in an IPO, buyers approach grey market brokers and offer to buy at a price or premium. Brokers then approach potential sellers, who had applied in the IPO.
What is the difference between grey market and dark market?
Black market products—such as those that are counterfeit—are illegal by the laws of most countries. "Gray market is typically not illegal, but it certainly violates both written and unwritten agreements and is a very unsavory way of doing business," says Brian Melonakos.
“Every gray market product raises the risk of product failure due to improper storage, shipping, or phony expiration dates – not to mention the risk of using an inferior quality, counterfeit product.” Many brands and businesses in online commerce loathe the practices.
In the United States, we tend to think of illegal drugs, prostitution, designer knockoffs, and ticket scalping when we think of black markets. More serious and lesser-known black markets operating worldwide include those in human organs, endangered species, babies, weapons, and slave labor (human trafficking).
As the name suggests, grey market goods fall between the two extremes. They are genuine products, but sales occur outside the usual supply chain and are not licensed or approved by manufacturers or distributors.
Grey market stocks are traded over-the-counter (OTC), which means that they are not offered by a stock exchange, but only by brokers and trading providers. By taking a position on a grey market stock, you're taking a position on a company's potential market capitalisation ahead of its IPO.
The sale of imported goods, the unauthorised resale of limited-edition products, or trading securities outside of licenced exchanges are examples of grey market operations.
