Now Unlisted shares are available for investment
What are unlisted shares?
Unlisted shares, also known as off-market stocks, are not traded on traditional/regulated stock exchanges. These shares have a higher risk as they are less liquid than listed shares, and their valuations are less transparent. However, investing in a well-chosen unlisted share with growth potential can lead to substantial returns once it gets listed, making these shares a good investment opportunity.
Things to consider while purchasing Unlisted shares:
• Unlisted shares trade over the counter (OTC). The buyer and seller connect via intermediaries to perform the trade directly.
• These shares bear a credit risk since government entities do not regulate the trades.
• Choosing the right intermediary for trading in unlisted shares minimizes risk significantly.
• Unlisted shares are generally traded between companies, big brokerage houses, and HNIs or institutional clients.
• You need to analyze the company’s fundamentals and other factors in-depth before investing in any unlisted share, as circumstances can move sideways easily.
• Unlisted shares can be a hidden gem and provide exponential returns if you pick the right share in your portfolio.
Frequently Asked Questions
As an investor how can you purchase these unlisted stocks from us?
=>Here are the possible ways how to purchase unlisted shares, that aid you in understanding and navigating this financial instrument effectively.
1. Employee stock options (ESOPs).
2. Direct purchases from promoters.
3. Through Private Deals with existing Shareholders.
4. Through Intermediaries such as GO Digital.
Is it mandatory to purchase the specified lot or investor is free to decide on quantity as per capital?
=>Yes, it is mandatory to buy a specific lot size when purchasing unlisted shares.
Will I get research reports of these companies before investing?
=>Yes, you will get a detailed Research Report and stock Analysis of the recommended companies before investing.
Who creates these reports and what is the authenticity & source of these reports?
=>The Research Analyst of the organization prepares these reports. The data for the stock analysis is taken from the Annual report of the given financial year and the financial reporting done by the company.
What detail do you need from me to purchase shares in my name/favor?
=>The following documents are required for verification while buying the shares:
1. Client Master Report (CML)
2. PAN Card
3. Cancelled Cheque
What payment options are available and where can I make the payment to purchase shares?
=>We accept the following payment options while purchasing the shares:
1. RTGS
2. NIFT
3. Bank Transfer
4. Cheques
After the payment, how much time will it take for the shares to reflect in my account?
=>After the payment, it takes around two working days i.e. T2 to complete the process. After two working days, the shares will be reflected in your account.
While purchasing these shares is NSDL Or CDSL involved in this process?
=>The shares are reflected in your registered depository account i.e. NSDL or CDSL.
When dealing with unlisted shares, both NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) provide platforms for managing these securities. For NSDL – My Speed-e-app and CDSL – My easi app
Can I purchase these shares in any of my demat accounts?
=>This completely depends on the depository and the Demat platform you are using. Some platforms reflect the Unlisted shares and some do not
Will I have to pay brokerage for the share purchase? If yes, how much?
=>No, you don’t have to pay any brokerage or additional charges, every sort of expense or charge is included in the buying price only.
In the past what were the tentative returns given by unlisted shares?
=>The following are the tentative returns given by unlisted shares:
1. Orbis Financial - Last (2Yrs) CAGR Rate - 113.83%
2. Chennai Super Kings Cricket Limited - Last (2Yrs) CAGR Rate - 226.52%
3. Tata Technologies - Since Inception CAGR Rate - 250%
4. Motilal Oswal Financial Services Limited - Last (5Yrs) CAGR Rate - 23.89%
5. OYO - Last (5yrs) CAGR Rate - 150%.
6. NSE - Last (2yrs) CAGR Rate - 22%.
When I want to sell these shares, how will you help me to sell them?
=>In case you want to sell these shares, we will help you connect with the potential buyer or we will directly buy from you.
What will be the process for selling these shares?
=>If you want to sell these shares, contact the dealer from whom you have purchased. After verifying your documents, will be looking for a potential buyer.
How much time will it take to sell the shares?
=>After verification of the buyer and seller, it takes 2 working days i.e. T2 to sell the shares.
In how many days will I get my share-selling amount back in my bank account?
=>After verification of the buyer and seller, it takes 2 working days i.e. T2 to get the share-selling amount back in your bank account.
If these shares get listed in IPO can I sell them directly?
=>If the shares get listed, after the IPO you will have a lock-in period of six months, post that you can sell these shares
What are the tax implications/liability after selling the share?
=>The tax implications are according to your Income tax slabs:
1. Tax on Short-Term Capital Gains – 20%
2. Tax on Long-Term Capital Gains – 15%
Is there any way to save tax on the profits of share selling?
Under section 80(C), you will be getting a tax exemption up to Rs. 1,00,000 according to your tax slabs.
Tax Implications:
Unlisted shares have different tax implications compared to listed shares. Short-term capital gains tax (at a marginal rate) applies if sold within 24 months. Long-term capital gains tax (20%) with indexation applies if sold after 24 months. Profits are calculated based on the Fair Market Value (FMV) until the shares are listed on a formal stock exchange.