Frequently Asked Questions (FAQ)
Find answers to common questions, providing clarity and insights to address any queries on your mind.
Unlisted shares represent ownership in companies that are not traded on public stock exchanges. This means they offer a unique investment opportunity separate from the traditional stock market.
An unlisted company is one that has not yet gone public through an Initial Public Offering (IPO) on a stock exchange. These companies may be in various stages of growth, from promising startups to established businesses.
Unlisted stock valuations require specialized methods since there isn’t a readily available market price. Techniques like discounted cash flow analysis (projecting future earnings) and comparing to similar listed companies are commonly used. Unlistify’s experienced team can help you understand these valuation methods. Contact Unlistify Team Now
Investors are drawn to unlisted shares for several reasons:
* Potential for high returns: If the company successfully grows and eventually goes public, early investors may see significant gains.
* Affordability: Unlisted shares can often be acquired at a lower price point than their listed counterparts.
* Diversification: Unlisted shares add a unique element to your investment portfolio.
Unlistify offers several avenues for acquiring unlisted shares:
Private Transactions: Connect directly with existing shareholders interested in selling.
Employee Stock Option Plans (ESOPs): Purchase shares allocated to employees of unlisted companies.
Unlistify’s Network: Access our curated selection of unlisted shares from our established network of investors and companies.
Lock-in periods typically apply to shares acquired during an IPO. This means existing shareholders cannot sell for a certain time. However, unlisted shares, in most cases, do not have a mandatory lock-in period on resale.
Unlistify strives for a seamless transfer process. Typically, shares are credited to your Demat account the same day funds are transferred to the seller. This timeframe is subject to completing all necessary formalities and the timing of your fund transfer.
While we aim for swift transfers, some factors can influence the timeline:
Transaction Time: Late-day transactions may carry over to the next business day.
KYC Completion: Ensure your KYC documents are up-to-date and verified.
Account Details Accuracy: Double-check your bank and Demat account information.
Holidays and Weekends: Non-working days can cause processing delays.
Understanding the tax rules is crucial. Profits from selling unlisted shares are treated as capital gains.
* Short-term Capital Gains (STCG): Gains from shares held less than 24 months are taxed at your income tax slab rate.
* Long-term Capital Gains (LTCG): Gains from shares held longer than 24 months are taxed at a flat 20% rate with the benefit of indexation.
Yes, NRIs can invest in unlisted shares in India. Unlistify can guide you through the process, which typically involves:
NRO Account: Utilize your Non-Resident Ordinary (NRO) account to fund the purchase and hold the unlisted shares.
Regulatory Compliance: We ensure adherence to all FEMA (Foreign Exchange Management Act) regulations for a smooth transaction.
Yes, foreign investors can participate in the unlisted market. Unlistify assists with navigating FEMA (Foreign Exchange Management Act) regulations and any additional sector-specific requirements.
Unlistify prioritizes trust and transparency:
Transparent Operations: We provide detailed information on each unlisted share, including potential risks, valuations, and legal aspects.
Security and Confidentiality: Your financial information is safeguarded with robust security measures.
Regulatory Adherence: We strictly comply with SEBI and all other applicable regulations for your protection.
Market Expertise: Benefit from our in-depth knowledge of the unlisted share market.
Detailed Documentation: We assist with all necessary paperwork for a smooth transaction.
Exceptional Customer Support: Our team is dedicated to guiding you through every step of the investment process.
Independent Verification: We encourage seeking advice from independent financial advisors or legal experts for your peace of mind.
We carefully curate our unlisted share offerings through these primary channels:
Employee Stock Ownership Plans (ESOPs): Acquire shares directly from employees with ESOP allocations.
Initial Investors and Stakeholders: Collaborate with early investors seeking to partially or fully liquidate their holdings.
Direct Company Allotments: In select cases, purchase shares directly from companies during funding rounds or private placements.
Secondary Market Transactions: Facilitate transactions between existing shareholders looking to sell.
Unlistify aims to make unlisted share investments accessible. We welcome clients with varying investment levels, and there is no set minimum to begin exploring exciting opportunities in the unlisted space.
Have a question that's not answered here?
Reach out to us directly for personalized assistance. Click below to contact our expert team and get the answers you need!
Contact Us