General
What are unlisted shares?
Unlisted shares are equity shares of companies that are not listed on a stock exchange and hence do not trade publicly.
Buying
How can I buy unlisted shares in India?
Invester can buy unlisted shares through dealers such as Growth Bazar that specilizes in unlisted shares.
Risks & Compliance
What are the risks of investing in unlisted shares?
1. Liquidity Risk • Biggest risk — unlisted shares are not easily tradable. • There is no formal market or daily trading, so selling your shares can take weeks or months. • You may have to sell at a discount to get an exit. ? 2. Valuation Risk • Prices are not transparent and depend on private deals or dealer quotes. • The company’s valuation may be inflated by sellers or intermediaries. • Hard to know the true worth of your investment at any given time. ? 3. Regulatory Risk • Unlisted companies are not as heavily regulated as listed ones. • Limited SEBI oversight, fewer disclosure requirements. • Potential for fraud or misreporting of financials. ? 4. Information Risk • Financial data, annual reports, or business updates are often hard to access. • Investors rely on limited or second-hand information, leading to poor decision-making. ? 5. Exit / IPO Risk • Many investors buy expecting an IPO or acquisition, but: • The company may never list. • The IPO may get delayed or priced lower than expected. • Your shares may be locked for 1 year post-IPO (as per SEBI rules).
Compliance
Are unlisted shares regulated by SEBI?
Unlisted shares are not regulated by SEBI.
Timelines
How long does it take for shares to be credited to my demat?
Shares will be credited on the same day or on the very next day, Normally we folllow T+1 share transfer, It may delay because of Holidays or other Non-Working days.
Fees
Are there any fees or charges?
A small stamp duties charge on transfer of shares. Approx RS 15 on value of 1 LAKH.