Selling Group

A Selling Group is a consortium of broker-dealers and financial intermediaries assembled by the lead underwriter during a securities offering—such as an IPO or bond issuance—to assist in distributing the securities to a broader investor base. Unlike syndicate members (who underwrite and share the liability risk), selling group members only sell the securities without assuming underwriting risk. They receive a selling concession (a portion of the underwriting spread) for each security sold. In India, selling groups in large IPOs may include dozens of registered brokers and distributors, ensuring wide geographic and demographic reach.