If you are someone who follows finance or invests regularly, you have probably heard the buzz about unlisted shares. From startups to major private companies, unlisted shares are becoming the talk of the town. But when it comes to accurate and simplified information, it is hard to find reliable guidance online.
That is why today, UnlistedKraft brings you a complete guide on unlisted shares in India. We will break down everything in simple words, give practical examples, and even tell you how to buy unlisted shares safely. By the end of this article, you will know the following:
So, stay with us till the very end, and we are sure that your knowledge about unlisted shares will improve, and you can make an informed decision when it comes to investment in unlisted shares.
Unlisted shares are shares of companies that are not listed on major stock exchanges like NSE or BSE. They exist, they can be bought and sold, but these transactions happen privately rather than publicly. The following are examples of companies with unlisted shares:
For instance, you might have heard of OYO unlisted share price trends circulating in startup investor circles. Similarly, Swiggy unlisted share price is often discussed by high-net-worth investors looking for early opportunities. Now, we will explain why unlisted shares are talked about, discussed and looked at as an opportunity by investors, but before that, consider this example.
Every summer, farmers bring mangoes to the mandi. Prices there are transparent, decided by demand and supply. But before reaching the mandi, the same farmer can sell some mangoes to local shops or traders at private rates. Prices vary, depending on trust, quality, and timing.
In this analogy:
Before listing on NSE/BSE, companies offer their shares privately. This private market, often unregulated, is called the grey market. Now, before we proceed, we need to understand how unlisted shares are actually made available in the grey market.
Unlisted shares can enter the market through several routes. Let us understand these routes from the table below:
For example, Tata Capital unlisted share price often comes from pre-IPO rounds before the company goes public. Similarly, investors keen on Paytm share price in its unlisted phase could enter through pre-IPO opportunities.
Since unlisted shares are not on stock exchanges, trading happens in informal or private markets. The following are some of the popular and convenient ways of trading unlisted shares:
Note: HNI stands for high-net-worth individuals.
For the month of October 2025, investors are keeping an eye on the MSEI unlisted share price and the Metropolitan Stock Exchange share price for select pre-IPO or private company transactions.
Now, we have understood what are unlisted shares, now let us see what are the differences between listed and unlisted shares from the table below:
So, with unlisted shares like NSE unlisted shares, or of any other popular companies, may be riskier initially, but if after IPO, the prices skyrocket, then you can earn huge profits.
This is a very important question that most of our readers usually ask. So, when it comes to record maintenance, the ownership is documented as follows:
The following are some of the important terms related to unlisted shares, which you may encounter when investing in unlisted shares. We have simplified them for easy and better understanding:
Example: If you bought Swiggy unlisted share price at ₹100, but later, no buyer is available, you are exposed to liquidity risk.
Now, as we know that rewards are high, but there are risks as well when it comes to unlisted shares, so now we come to another important question on why do investors buy unlisted shares:
For instance, pre-IPO investment in Paytm or Tata Capital unlisted share price rounds gave early investors substantial upside. Some of the popular unlisted shares whose prices are being observed are Swiggy unlisted share price, PharmEasy share price, and Polymatech share price in the grey market.
Let us understand the risks associated with investment in unlisted shares from the following points:
Tip: Today, if you are planning to invest in unlisted shares like NSE unlisted share or MSEI unlisted shares, always check the NSE unlisted share price today or the MSEI unlisted share price trends before making a decision.
Now, let us see what the taxation rules are that apply when it comes to investment and earnings associated with unlisted shares:
Investing in unlisted shares is simple if you invest through UnlistedKraft. We will explain the steps with an example. In this example, say, you want to invest in Oyo unlisted shares, then the following are the steps:
Step 1: Visit www.unlistedkraft.in
Search for the company’s unlisted in which you want to invest. Here, we are searching for Oyo. So, we will directly click on Oyo icon on the home page👇
Enter the number of units you want to buy and click on “Invest Now”👇
Also, you need to to verify the OTP.👇
Once you read it it, check mark “I Understand.” and then click on “Proceed”👇
Please note that the settlement period is 5 working days from the transaction date.👇
Tip: If you want to see the unlisted shares price list in India, you can check from the UnlistedKraft website.
The following may be the future of unlisted shares in India:
Unlisted shares give investors early access to promising companies before they hit the stock market. Yes, they carry higher risks, but the potential rewards can also be significant.
For retail investors, the golden rules are:
💡 If you want to explore unlisted shares India safely and see the best unlisted shares to buy, visit UnlistedKraft
Unlisted shares, also known as unlisted equity shares or pre-IPO shares, are equity securities issued by private companies that are not traded on public stock exchanges like the NSE or BSE in India. These shares represent ownership in the company but are bought and sold privately through over-the-counter (OTC) transactions, often between promoters, founders, employees, venture capitalists, or select investors. Unlike listed shares, they lack the transparency and liquidity of public markets, as they are not subject to the same regulatory disclosures or real-time pricing.
Yes, retail investors in India can buy unlisted shares, though access is more restricted than for listed stocks. They can purchase through specialised brokers, online platforms like UnlistedKraft, private placements, angel networks, or Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) that invest in unlisted equities. Minimum investments may start as low as ₹5,000–₹50,000, but KYC verification (PAN, Aadhaar, Demat details) and demat account transfer are required. NRIs can also participate via NRO accounts with additional FEMA compliance.
Yes, unlisted shares are fully legal in India, provided transactions comply with SEBI regulations, Companies Act provisions, and FEMA for NRIs. They are traded OTC or via authorised intermediaries, and platforms must ensure demat transfers through CDSL/NSDL depositories. While less regulated than listed shares, SEBI monitors private placements and PMS/AIF investments to prevent fraud. Investors should verify seller authenticity and use registered brokers to avoid risks like non-delivery.
The biggest risk is limited liquidity, as unlisted shares are not traded on exchanges, making it difficult to sell quickly without finding a willing buyer. This can result in extended holding periods (weeks to months) or forced sales at undervalued prices, especially during market downturns. Other notable risks include a lack of transparency (limited financial disclosures), valuation ambiguity (no standardised pricing), higher fraud potential from unregulated platforms, and volatility from company-specific events like funding failures. That is why we recommend UnlistedKraft for all unlisted share trading.
Unlisted shares can pay dividends if the company declares them based on profitability and board policy, just like listed shares. Dividends are credited directly to the linked bank account via the demat holder. However, dividends from unlisted companies are rare, as many are growth-stage firms reinvesting profits rather than distributing them. If paid, they are taxed at the investor's slab rate (up to 30% plus cess/surcharge).
For pre-IPO shares in India, there is no mandatory lock-in before the IPO. However, once the company lists via IPO, SEBI mandates a 6-month lock-in period for pre-IPO investors (non-promoters) from the listing date to prevent immediate selling and market volatility. Promoters face a longer 18-month lock-in (or 3 years for minimum promoter contribution). This applies to mainboard IPOs; SME IPOs may have a 1-year lock-in. Retail IPO allottees have no lock-in.
In India (FY 2025-26), taxation on unlisted shares depends on holding period and type of income:
Report in ITR-2/ITR-3 under "Capital Gains." NRIs face 10-20% withholding on LTCG.
No, you cannot sell unlisted shares "anytime" like listed ones due to low liquidity and OTC trading. Sales require finding a buyer via brokers or platforms, which may take days to weeks (or longer). Transactions involve demat transfers and paperwork, with no guaranteed quick exits. Pre-IPO shares face a 6-month post-listing lock-in.
Unlisted shares can be suitable for diversification and high returns (100–150% YoY potential in growth firms) but only for risk-tolerant investors with a long horizon (2–5 years). Allocate no more than 5–10% of your portfolio due to liquidity, transparency, and fraud risks. Ideal if you research via platforms and use regulated intermediaries; avoid if you need quick liquidity or are risk-averse.
Diwakar Singh is a seasoned financial content strategist with over six years of experience in analysing and writing about financial instruments and markets.
An MBA gold medalist from IMT, he blends academic excellence with practical insight to craft clear and actionable content. His expertise spans banking, investments, insurance, capital markets, and emerging financial technologies.
Known for his research-driven approach and engaging style, Diwakar is recognised as a trusted voice helping readers and businesses navigate the evolving financial landscape with confidence.
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amit@unlistedkraft.in
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+91-9599071664
amit@unlistedkraft.in