Penny Stocks India - investing in Penny stocks in India

Penny stocks in India are still not that prevalent, but are available. They remain a risky proposition, but lot of people sell and buy these stocks hoping to make a quick fortune.

What are Penny Stocks India

Penny stocks in India are the stocks of listed companies in India (NSE or BSE) that is trading at very low prices - say below Rs 10 or 20.

Penny stocks in India can be a good opportunity to make money but at the same time are a risky proposition. The reason for this is that typically penny stocks have very less volume and hence their price can fluctuate heavily by buy and sell decision of a single stock promoter or manipulator.

Penny Stock India - Should you buy?

It depends. You should buy Penny stocks in india only after doing complete research and after being aware of risk of transacting in Penny stocks.

As they say - Penny stocks come in 'high risk, high reward' category and hence only professionals are advised to play with these instruments.

Penny Stocks - taxation

In Jun 2016, India Income Tax Tribunal has given a judgment on Penny stocks and its taxability. As per their judgment gains from penny stocks can not be termed bogus even if SEBI (the Securities and Exchange Board of India) is probing into possible irregularities in these stocks.

"If payment is by cheque and delivery of shares is taken, then long-term capital gains tax cannot be treated as bogus" - tribunal

News about Penny Stocks in India

• Jan 12, 2017 - Sebi targets 32,000 penny stock players. SEBI has identified about 32,000 entities that were involved in manipulating penny stocks for long-term capital gains, against which it is proposing action by the income tax department.