22 July 2019
All-your-money-queries-answered
Personal Finance Queries For The Day (22-07-2019)
Sunil, sunilkumar.aps82@gmail.com, Pune: What is off market Trade. How it works?
The trade that settles through a Clearing Corporation/ Clearing House of exchange is classified as " Market Trades." These trades are done through stockbrokers on a stock exchange. 'Off Market Trade' is one, which settles directly between two parties without the involvement of clearing corporation.
The person who sells the shares is known as the transferor, and an individual who receives or buys the shares is called transferee.
Putting it merely, off-market trading is a way of transferring shares to a second party through the off-market route. It is a way to transfer the ownership of shares owned by one individual to another. The taxes on the off-market trading generally depend upon the period for which they are held.