Frequently Asked Questions

They offer opportunities for high returns as companies grow, diversification of your portfolio, and early access to potential future blue-chip companies.

No, unlisted shares are generally illiquid as they are not traded on stock exchanges. Finding buyers or sellers can take time.

Risks include lower liquidity, lack of regulatory oversight, limited access to financial information, and potential loss of capital if the company underperforms.

Pre-IPO shares are a subset of unlisted shares that belong to companies planning to go public soon. These shares are often sought for their growth potential.

Pricing is determined through negotiations, based on factors like the company’s financial health, industry growth prospects, and recent transactions.

Yes, capital gains tax applies:

• Short-term (holding period < 24 months): Taxed as per your income tax slab.
• Long-term (holding period > 24 months): Taxed at 20% with indexation benefits.

Investors with a high-risk appetite and long-term investment horizon, looking to diversify their portfolio, can consider investing in unlisted shares.

• Early-stage investment opportunities.
• Potential for high returns upon listing or acquisition.
• Diversification into private equity markets.

Yes, unlisted shares fall under the purview of the Companies Act and SEBI regulations but lack the stringent requirements of listed shares.

Yes, when the company goes public through an IPO, unlisted shares are converted into listed shares.

• Financial performance and future prospects of the company.
• Industry trends.
• Management credibility.
• Exit opportunities and holding period.