Nov 3, 2017

What is off-Market acquisition? : Stock market study

Sometime you see off market acquisition by promoters. The number of shares could be huge too. Ever wondered from where those shares came!
Transaction is called off Market transaction.

An off-market transaction is settled between two parties on mutually agreed terms and the clearing corporation or the stock exchange is not involved. These include legacy transfers, gifts, transfer of shares between two demat accounts, shifting of securities between a client and a sub-broker, and transactions in unlisted securities. One party is the transferor, while the other is the transferee.

Instruction slip: The transferor has to give a delivery instruction slip (DIS) to his depository participant (DP), instructing the latter to transfer the securities to the receiver's (transferee's) demat account. The 'off-market trade' option must be selected in the DIS.

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