Decoding grey market premium, factor investing and STP

A grey market is a parallel market where the trading takes place outside the regulated markets. In this market, a company’s shares are bid and offered by traders unofficially. It takes place before the shares are even issued by the company in an IPO.

Asset Yogi’s Mukul Malik, QED Capital’s Anish Teli and ICICI Prudential Mutual Fund’s Chintan Haria, Dohanomics’ author Vinayak Sapre share their expert insights on grey market premium, factor investing, systematic transfer plan and investment strategies.

“We should know GMP does not have legitimate sources. We don’t know where it is coming from, hence the word ‘grey’. The dealings are separate and away from the stock market and it is not regulated by SEBI. If you are getting information regarding GMP from reliable sources, then it is definitely a market indicator. We cannot neglect the price of GMP. An investor is ready to pay the premium in GMP because there are higher chances of listing,” Mukul Malik said.

Factor investing takes the best features of passive and active investment. It is also called ‘smart beta investing’, QED Capital’s Anish Teli said.

Watch the full video to know more