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Beginners Guide to Unlisted Shares

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UnlistedCorner.com

What Are Unlisted Shares?

<p>Unlisted shares are equity instruments of companies not listed on Indian stock exchanges (NSE/BSE). Traded privately or via OTC platforms, they lack the liquidity of public markets.</p>

Why Invest in Unlisted Shares?

Pre-IPO Growth

Access unicorns like Swiggy before they go public.

Valuation Discounts

Cheaper than listed peers (e.g., HDB Financial Services vs. HDFC Bank).

High Returns

Early Flipkart investors saw 10x+ returns post-Walmart acquisition.

Diversify

Tap into India’s booming startup ecosystem.

How to Invest in India

OTC Platforms

Use platforms like UnlistedCorner.com

Private Placements

Direct deals with companies (accredited investors only).

Pre-IPO Markets

Brokers specializing in pre-listing shares

ESOPs

Buy employee stock options (e.g., from Swiggy/Zomato employees).

Key Risks

Illiquidity

No guaranteed exit (hold 3–7 years)

Startup Failures

90% of Indian startups shut down within 5 years

Tax & Regulations

LTCG

20% tax after 24 months with indexation (Old Regime) and 12.5% without indexation (New Regime)

STCG

Taxed at slab rates if sold within 24 months.

Steps to Invest via UnlistedCorner.com

  1. 1

    Sign Up

    Create an account on UnlistedCorner.com

  2. 2

    KYC

    Submit PAN, Aadhaar, Client Master Report & Cancelled Cheque

  3. 3

    Browse Listings

    Explore pre-IPO shares, startups, or delisted firms

  4. 4

    Negotiate Price

    Use real-time data to finalize deals

  5. 5

    Settle

    Transfer funds/shares via secure channels

  6. 6

    Track

    Monitor holdings via your portfolio dashboard

Tips for Success

Start Small

Allocate 5–10% of your portfolio

Diversify

Mix sectors (fintech, EV, healthtech)

Leverage Tools

Use UnlistedCorner.com’s valuation models and alerts

Common Mistakes

Ignoring Liquidity Risks: No IPO guarantee
Overpaying due to FOMO: e.g., 2021 startup bubble

Conclusion

<p>Unlisted shares are a high-risk, high-reward asset class ideal for patient investors. Always prioritize due diligence, diversify, and plan for long-term illiquidity.</p>

Conclusion

<p>Unlisted shares are a high-risk, high-reward asset class ideal for patient investors. Always prioritize due diligence, diversify, and plan for long-term illiquidity.</p>

Explore UnlistedCorner.com