FAQs (2024)

What are Unlisted Shares?

The shares which are not listed on the formal stock exchanges (BSE/NSE) are referred toas unlisted shares/ stocks. For instance, JIO has unlisted shares, OLA has it as well.Unlisted shares are riskier than listed shares as their liquidity is limited since it is notlisted. They are less transparent but with more stable valuations. So, if you can pick anunlisted share that has all the potential to get listed and the company has growthpotential, your returns can be amplified enormously from that share.

What is the Difference between unlisted & delisted shares?

Unlisted shares shouldn’t be confused with Delisted shares. Both types of shares arecompletely different. While unlisted shares are those which are not listed on the stockexchanges yet, delisted shares are those which were once listed but dropped out from thelisted shares category due to certain reasons. You can trade and invest in unlisted shareson OTC markets, but you cannot invest or trade any delisted shares. Delisted shares arenot available on any platform whether it is formal stock exchanges or OTC.

Who sells unlisted equity shares?

Existing shareholders of the unlisted company can sell unlisted equity shares. These caninclude Employees, Ex-employees, CEO, Promoters, Private Equity investors, and more.

Is the company involved in selling unlisted shares?

The company may or may not be involved. If the company is looking to raise funds andissue further paid-up capital, it can be involved, otherwise, the company is not involved.Although most of the unlisted shares we deal with are ROFR (Right of First refusalcleared) and are freely transferrable. In some instances, the companies/board does abasic KYC and deed of adherence. Unlistedkart informs the entire process before pre-trade for such transactions. Typically, these are block deals.

Are the shares being sold in DEMAT form?

Yes. All shares being sold are in the DEMAT form and will credit to the DEMAT you holdcurrently and shared with Unlistedkart during the transaction.

Why do investors buy unlisted shares?

What is the time horizon to see the typical gains in unlisted shares?

Our past data suggests holding for 3 years to see meaningful returns. To get the idealreturns, one will have to be invested in the company from an early stage till it comeswith IPO and keeps growing until it has reached its saturation point. This durationcannot be accurately predicted by almost anyone.

Do the unlisted shares have any lock-in?

Depends on certain factors. As such, there are no restrictions on the sale of unlisted
shares. However, if the company comes up with an IPO and gets itself listed, then as per
SEBI rules, all unlisted shares have a lock-in period of 6 months from the date of listing.
This is 1 year prior to August 2021 if any company had filed for DRHP before then. Also,
once the company Issue date and Listing are published, typically within a few days of the
actual listing, corporate action restricts an investor from selling the stock.

What is the kind of risks involved in unlisted shares?

What is the kind of risks involved in unlisted shares?

How do I trust Unlistedkart to do large trades?

Can I know more about the company?

Does unlistedkart help clients in choosing the right stock for their portfolio?

No, our investment specialists will talk to you and help you get the right information
about a company or stock. As investment decisions are pretty much personal and mostly
depend on the unique requirements, knowledge, and risks associated with the clients,
we offer neutral research reports. Later, the clients can take the financial advisor’s
assistance to make a call on the right stock to invest in.

How can you invest in Unlisted shares?

You can go about investing in shares that are suitable for your risk profile and portfolio
by contacting us and getting research reports and seeking external financial advice. With
Unlistedkart, you can reach out to our customer specialists at [emailprotected] or
alternately download our app and conveniently buy and sell unlisted shares.

Will Unlistedkart help you with buying/selling unlisted shares?

Yes, we will help you with trading unlisted shares. Although we would request you to
make the investment decisions after seeking sufficient investment advice externally.

Where will you hold your shares?

Unlistedkart does not hold your unlisted holdings with itself. All your stocks are kept in
your NSDL (National Securities Depository Limited) or CDSL (Central Depository
Securities Limited) Demat account. Our platform will only present you with the
transactional information that you can find in your dashboard portfolio. All shares that
Unlistedkart deals with are already in DEMAT, and we do not have any physical shares.
Most of the shares we deal with are freely transferrable and ROFR (Right of the First
Refusal cleared/approved).

What are the documents required for procuring shares with Unlistedkart?

I am an RM/IFA, and my clients are interested to procure Unlisted shares, will Unlistedkart Help?

When can we liquidate after IPO?

There is a lock-in period for 6 months once the company hits IPO. It is regulated by SEBI.

How long will it take for the shares to reflect in the DEMAT account?

Usually, it takes around 4-6 hours for the shares to reflect in the DEMAT account when the
orders are placed between Monday to Friday 9 AM to 5 PM. We will share the proof of
transfer once the shares are transferred, and typically shares show in the investor’s
DEMAT Account (statement/Transactions history) within 24 hours.

When should a client liquidate his shares?

We do not advise clients on the potential liquidity and suggest investors take external
financial advisors’ inputs. Although if there is a demand from a different investor within
our network, we help the clients liquidate shares by buying back depending on the
demand of such shares.

Do you buy back shares?

Yes, we buy back shares depending on the current demand for such shares.

What is the minimum investment?

There is no minimum investment. We at Unlistedkart have created an opportunity for all
types of buyers. Our vision is to democratize investing into growth-oriented startups at an
early stage.

What do you mean by Unlisted shares research report?

Are the research reports prepared by Unlistedkart chargeable?

Yes, every research report you get from Unlistedkart is chargeable. The charge is
nominal and taken as a convenience fee to assist report generation. According to the
specific and unique needs of the clients, we also prepare customized reports. Get in
touch with us here and learn more.

How will you get the research report?

Once you register for our app and complete the onboarding process, you will be able to
buy the research report online for a nominal charge. Our expert analysts will assist you
in getting to know our research reports as well as our tech platform that you can use to
raise any questions related to reports.

What if you find any issue with the research report or data on the tech platform or website? What should you do?

We, at Unlistedkart, strive to keep our website, tech, platform, and research reports up
to date with the best of our knowledge bettered by relevant sources and reports.
However, unfortunately, if you happen to come across any inaccuracy,
misrepresentation, or solicitation information in error, you should
contact[emailprotected].

How often does unlistedkart refresh the research report?

We refresh all the research reports available to us every quarter or as and when there is
a specific market situation that is more likely to influence the research information. Also,
we make sure to customize the reports according to the needs of our clients. And all our
reports are up-to-date and latest.

How will I know when the company will get listed?

We will only be able to provide a tentative timeline of the listing of the company based on
the public information or company disclosure.

What are the Tax Implications of Unlisted Shares?

How to keep a track of the price change daily?

Since there is the absence of active traders like in a listed exchange there are not many price changes daily. However, to keep a track of the price change one can download the Unlistedkart app and keep a track of the same, as we make a conscious effort to validate the market prices based on the supply and demand and maintain the same on our app.

Is there an online process where one can procure or liquidate shares?

Unlistedkart app helps in procuring and liquidating shares of unlisted companies. You can
place a buy order post completion of a one-time KYC.

Information on the application steps to download, register and complete the KYC process

How do I download the app?

Why should I buy and sell with Unlistedkart?

How To Get Started After Downloading the Unlistedkart App?

Signing up on Unlistedkart Android App or iOS app is very easy. Enter your mobile number and the received OTP. Just follow the steps and provide the necessary information and complete your KYC! You will have successfully signed up on the Unlistedkart app and are ready to purchase unlisted shares and reports.

How To Use the Unlistedkart App?

Unlistedkart app is very easy to use. All the services provided are mentioned on the Homepage itself. You just must click on your desired service and follow the steps. and so much more!

The Advantages of Using Unlistedkart App