How to Buy and Sell Unlisted Shares in India
Unlisted shares are becoming the buzzword in India, and it is becoming trendy to invest in mid-sized companies called startups or intermediaries. You can sell or buy unlisted shares directly from promoters or employees, and it is easy to sell the required quantity to the potential person through his Demat account. It is the type of account vital to have when dealing with unlisted shares.
The procedure of selling unlisted shares in India
It is the stage for the companies to get an opportunity for the funding to grow further.
1. Connecting with an intermediate platform
A platform like Unlisted Mitra is the first step to take nicely. It is the choice that you take thoroughly because this is the person you need to rely upon for your future decisions while standing in the market. They are the ones who give you on the platform to be valued by the buyers of your unlisted shares.
2. Listening and learning
In the next stage, now it's your turn to give you information about unlisted shares and manage your complete holding for the same purpose. After you get complete information, you can proceed with the next step.
3. Documentation and transaction
After completing the documentation, you pay the amount that demands you to give for your shares listing. It is near to the last step before you go live when people can buy unlisted shares in the market.
4. Access to dashboard
After empaneling, you access the dashboard that allows the investments to come and update information. You can also get a personalized consultation for thorough details of simple and more accessible use. Update all the information about your product and prospectus so that the buyer can quickly go through the information and make the right decision.
Although it is vital for the buyer and seller to be transparent and connected through WhatsApp or other media, sometimes your intermediator can take your responsibility and act as your helper. Since things are not registered as public, operations run on a trust basis only.
5. Deal done
It is where you get your deal completion notice. Everything is proper and set, nothing is at risk, and everything is secure. Just wait for the buyer to come and avail your best deal.
The procedure of buying unlisted shares
There is a difference between buying listed shares and unlisted shares. When you are in the listed legal market, you need not worry about the safety net. There is always regular monitoring, and all regulations are acceptable under India's Securities and Exchange Board. However, the unlisted market holds higher risks due to fewer regulations. Still, the stronghold of the procedure can let you gain profit and exposure here and reap the growth opportunities.
1. Choose the seller mode
You get various options when it comes to purchasing unlisted shares.
On one side, you can invest in startups. It is a private pre-price company, but it is near to a public share in the future.
Secondly, your alternative is buying ESOPs from employees or promoters. When you go to brokers, they connect you with employees of that business. The benefit that you get here is that you know the set price on which they are selling the shares after a set period. Also, buying stocks from promoters of the company shares is possible through a trusted investment bank or again from brokers.
Thirdly, you can also invest in AIF and PMS schemes apart from the above options. PMS is a portfolio management system in which the investment portfolio is very professional and helps you dynamically decide and understand the market trends to multiply the investors' return.
2. Understanding all related risks
Some risks while dealing with unlisted shares can be illiquidity, dilution, loss of dividend, and downward trend of capital.
It is vital to take investment decisions after thoughtful consideration and consultation with some experienced person to avoid the above risks when you buy unlisted shares in India.
Share your documents like Aadhar card and more and finalize the deal.
4. Payment and Receiving
The last step is to make the payment and buy an unlisted share in your Demat account. Get your receipt too!
Unlisted Mitra is always available for you to simplify the process of dealing with unlisted shares. Let’s be towards it!