The market maker charges a fixed fee (e.g., Rs 25000 per month) for one year to three years.
The company has to issue 5% of the issue volume to the market maker through SME IPO. The profit earned on these shares remains with the market maker.
They are also allowed to place 2-way orders (buy and sell) simultaneously. For example, they can place orders in the range of Rs 100 - 102. They buy shares at Rs. 100 and sell them at Rs. 102. They keep the profits made.
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