What are unlisted shares?
Unlisted shares are shares of companies that are not yet listed on a stock exchange like NSE or BSE. They are usually bought from early investors or employees of the company, giving investors a chance to own a stake before a possible IPO.
Key features
- Pre-IPO opportunity: invest in growing companies before they come to the public market.
- Held in your demat account: unlisted shares are transferred electronically, just like listed shares.
- Lock-in after listing: if the company lists, pre-IPO shareholders usually face a lock-in period as per SEBI rules.
- Limited liquidity: there is no exchange to sell on, so exiting can take time and prices are negotiated.
Who is it for?
Unlisted shares suit investors with a long horizon and a higher appetite for risk, who understand that a listing is never guaranteed.
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Investments are subject to market risks. Read all offer and scheme-related documents carefully before investing.