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+--- Thread: Investing in Unlisted Shares: Important Points to Know (/showthread.php?tid=63457)
Investing in Unlisted Shares: Important Points to Know - planifycapitalltd - 02-27-2026
Unlisted shares are shares of companies that are not traded on stock exchanges like NSE or BSE. This means investors cannot buy or sell them through regular trading apps. Transactions usually take place privately between buyers and sellers.
Many investors look at this space to enter companies before they get listed. Some businesses may plan an IPO in the future, while others may continue operating as private companies. Before investing, it is important to understand how this market works.
Unlike listed stocks, there is no live price available. The value of unlisted shares is generally decided through negotiation. Factors such as company performance, recent funding activity, and demand in the private market influence pricing.
Liquidity remains one of the key concerns. Selling these shares may take time, as there is no active exchange platform. Investors should be ready for a longer holding period.
Transparency is another factor to consider. Listed companies must follow strict disclosure rules and publish regular results. Unlisted companies have fewer public reporting requirements, which makes independent review important.
Key points to review before investing include:
Company background
Understand the business model, revenue sources, and management team.
Financial health
Check available financial statements and growth trends.
Exit possibility
Assess whether there is a potential listing plan or other exit options.
Documentation process
Ensure shares are transferred properly through a demat account with valid paperwork.
Overall, investing in unlisted shares can offer early exposure to businesses, but it also involves higher uncertainty. Clear understanding and realistic expectations are essential before taking any step.