Fractional shares will let small investors buy big stocks
- Embracing fractional thinking might be straightforward in arithmetic but poses regulatory challenges in company law and taxation. Nonetheless, adopting this approach could level the playing field for India's retail investors.
The ministry of corporate affairs (MCA) and the Securities and Exchange Board of India (Sebi) are considering allowing the issuance and ownership of fractional shares, Mint has reported. This is a concept that’s caught on in the US where such shares have garnered popularity among retail investors. Currently, Indian regulations prohibit ownership of less than a whole share.