FAQ
Find quick answers.
No. At Unlisted Arena, we follow a transparent pricing approach with no hidden brokerage charges.
Zero Brokerage
We do not charge percentage-based brokerage fees on transactions.
Transparent Pricing
The agreed per-share price is the final execution price communicated before the transaction.
No Hidden Costs
Investors are informed about transaction terms in advance to ensure complete transparency throughout the process.
Any statutory charges such as stamp duty or taxes, where applicable, are governed by prevailing regulations.
Yes.
Investors holding unlisted shares may be eligible for dividends, bonus shares, stock splits, rights issues, buybacks, and other corporate actions declared by the company, subject to their ownership on the relevant record date.
Dividends
If the company declares a dividend, the amount is generally credited directly to the bank account linked to the investor's demat account.
Bonus Shares
Bonus shares are automatically credited to the investor's demat account when declared by the company.
Stock Splits
Stock splits are processed through the depository system and reflected automatically in the demat account.
Other Corporate Actions
Shareholders may also become eligible for:
- Rights issues
- Buybacks
- Mergers
- Demergers
- Special dividends
- Other corporate actions approved by the company
Once shares are credited to the demat account, investors generally enjoy ownership rights similar to those associated with listed equity shares.
If unlisted shares are sold within 24 months from the date of purchase, the gains are generally treated as Short-Term Capital Gains (STCG).
Tax Treatment
The gain is added to the investor's total taxable income and taxed according to the applicable income tax slab.
In Simple Terms
- Holding Period: Up to 24 months
- Tax Classification: Short-Term Capital Gain (STCG)
- Tax Rate: As per applicable income tax slab
- Taxability: Added to total taxable income
Investors should consult a tax professional for guidance based on their individual circumstances.
If unlisted shares are held for more than 24 months before being sold, the gains are generally classified as Long-Term Capital Gains (LTCG).
Current Tax Treatment
Long-term capital gains on unlisted shares are currently taxed at 12.5% without indexation benefits.
In Simple Terms
- Holding Period: More than 24 months
- Tax Classification: Long-Term Capital Gain (LTCG)
- Current LTCG Tax Rate: 12.5%
- Indexation Benefit: Not available
Tax laws may change from time to time, and investors should verify the latest provisions before making investment decisions.
Once a company becomes listed on a stock exchange, the taxation framework shifts from unlisted share taxation to listed equity taxation.
Key Changes After Listing
Shorter Long-Term Holding Requirement
The holding period required to qualify for long-term capital gains generally reduces from 24 months to 12 months.
Annual LTCG Exemption
Investors may become eligible for the annual LTCG exemption available under prevailing tax regulations.
Listed Equity Tax Rules
Future gains are taxed under the taxation framework applicable to listed equity shares rather than unlisted securities.
Because tax laws can change, investors should consult qualified tax professionals or refer to the latest Income Tax provisions.
According to current SEBI regulations, pre-IPO shares are subject to a lock-in period after the company gets listed on a stock exchange.
The important point to understand is that the lock-in period starts from the date of listing, not from the date you purchased the shares.
Before the IPO
Prior to listing, investors can generally sell their shares in the unlisted market, subject to buyer availability and applicable regulations.
After the IPO
Once the company gets listed, eligible pre-IPO shareholders become subject to the applicable lock-in requirements prescribed by SEBI.
Investors should always refer to the latest regulatory guidelines, as lock-in provisions may change over time.
Yes.
Once the applicable lock-in period ends, the shares become freely tradable on the stock exchange.The depository automatically removes the lock-in status after the prescribed period expires.
After that, investors can sell their shares through their broker just like any other listed equity share.
No additional forms or approvals are generally required once the lock-in period has ended.
Selling unlisted shares is a straightforward process, although it takes place outside stock exchanges.
Investors generally have two primary exit routes:
Secondary Market Sale (Before IPO)
You do not need to wait for an IPO to sell your shares.
Unlisted shares can be sold through private market transactions to interested buyers.
Depending on market demand and pricing, platforms such as Unlisted Arena may also facilitate the transaction.
Sale After Listing
Investors may choose to hold their shares until the company completes its IPO.
After listing and completion of any applicable lock-in period, shares can be sold directly through the stock exchange using a regular trading account.
Unlisted shares can be transferred from one demat account to another through an off-market transfer.
This may be done for:
- Self-transfer between accounts
- Gifts to family members
- Sale transactions
- Ownership restructuring
Online Method (CDSL Easiest / NSDL SPEED-e)
Investors can initiate electronic transfers through depository platforms.
Typical steps include:
- Adding the beneficiary account
- Selecting the ISIN
- Entering the quantity
- Choosing the transfer reason
- Authenticating the transaction
Offline Method (DIS Slip)
Investors may also submit a physical Delivery Instruction Slip (DIS) through their broker.
The form generally requires:
- ISIN details
- Quantity
- Beneficiary demat account number
- Signature verification
Important Note
Where consideration is involved, applicable stamp duty and regulatory requirements must be complied with before transfer completion.
In most cases, unlisted shares are credited to the buyer's demat account on the same working day or the next working day (T or T+1) after payment verification.
The process generally involves:
Payment Confirmation
Funds are received and verified through official banking channels.
Off-Market Transfer Initiation
The transfer instruction is submitted through the depository system.
Depository Processing
NSDL or CDSL processes the transfer and credits the shares directly to the investor's demat account.
Actual timelines may vary depending on documentation verification and depository processing schedules.
Once transferred successfully, unlisted shares are credited directly to your demat account.
Investors can verify their holdings through:
Depository Platforms
- CDSL myEasi
- NSDL SPEED-e
These platforms usually reflect holdings before broker applications update their systems.
Broker Back Office
Most brokers display unlisted holdings in the DP Holdings or Demat Holdings section of their back-office portal.
Important Note
Because unlisted shares are not traded on stock exchanges, they may not appear on the main trading screen of your broker's mobile application. In many cases, they can only be viewed within the demat holdings section.
Face Value
The face value (also known as nominal value) is the original value assigned to a share by the company.
Face value is commonly used for:
- Accounting purposes
- Dividend declarations
- Bonus issues
- Stock splits
- Corporate actions
ISIN Code
The International Securities Identification Number (ISIN) is a unique identifier assigned to securities held in dematerialized form.
The ISIN helps:
- Verify ownership
- Process share transfers
- Facilitate corporate actions
- Maintain depository records
Every unlisted share held in demat form has a unique ISIN assigned by the depository system.
A Client Master Report (CMR) or Client Master List (CML) is usually required when purchasing unlisted shares.
The CMR can generally be obtained through:
Broker Back-Office Portal
Most brokers allow investors to download a digitally signed CMR directly from their online portal.
Customer Support
Investors can request a CMR by contacting their broker's customer support team.
Why Is a CMR Required?
The CMR acts as official proof of:
- Demat account ownership
- BO ID (Beneficiary Owner ID)
- Linked bank account details
This helps ensure that shares are credited to the correct demat account.
Unlisted shares are generally held and transferred in electronic (demat) form, similar to listed shares.
Physical share certificates are rarely used for modern unlisted share transactions.
Benefits of Holding Unlisted Shares in Demat Form
Secure Ownership Records
Electronic records reduce the risk of loss, theft, forgery, or damage.
Faster Transfers
Demat holdings allow seamless off-market transfers through depositories.
Easy Verification
Investors can easily verify ownership through their depository statements.
Automatic Corporate Actions
Dividends, bonus shares, stock splits, and other corporate actions are processed automatically through the depository system.
Holding shares in demat form provides convenience, transparency, and enhanced security.
No. A regular demat account is sufficient for holding unlisted shares.
Investors can hold unlisted shares using demat accounts provided by:
- Zerodha
- Groww
- Upstox
- Angel One
- ICICI Direct
- HDFC Securities
- Other registered brokers and depository participants
No separate or special demat account is required.
Yes. Investors can use their existing demat accounts with most registered brokers in India to hold unlisted shares.
However, it is important to understand the difference between a trading platform and a demat account.
You Do Not Buy Them Through the Trading App
Since unlisted shares do not trade on NSE or BSE, they cannot be purchased through standard buy and sell buttons available on trading platforms.
You Hold Them in the Same Demat Account
Once purchased through an off-market transaction, the shares are credited directly into your demat account maintained with NSDL or CDSL.
The shares remain securely held in the same demat account used for listed securities.
The price of unlisted shares is primarily determined by demand and supply in the private market. When investor demand increases and available supply remains limited, prices tend to rise. Conversely, prices may decline when supply exceeds demand.
Apart from market demand and supply, several other factors influence the valuation of unlisted shares:
- Company's financial performance and profitability
- Revenue and earnings growth
- Industry outlook and market position
- Recent funding rounds and valuations
- Investor sentiment
- Expected IPO prospects
- Performance of comparable listed companies
Since unlisted shares do not trade on stock exchanges, prices can vary across transactions and may change based on prevailing market conditions.
Historical performance varies from company to company and depends on factors such as business growth, profitability, industry trends, investor demand, and overall market conditions.
Investors can analyze historical performance by reviewing:
- Historical price charts
- Valuation trends
- Market capitalization growth
- Revenue and profit growth
- Corporate developments
- Funding and investment activity
Studying historical price movements can help investors understand how valuations have evolved over time, although past performance does not guarantee future returns.
Before investing in unlisted shares, investors should review the company's financial performance and valuation metrics to make an informed decision.
Important areas to evaluate include:
Financial Statements
Review the company's:
- Profit & Loss Statement
- Balance Sheet
- Cash Flow Statement
- Annual Reports
Key Valuation Metrics
Investors commonly analyze:
- Market Capitalization
- Earnings Per Share (EPS)
- Price-to-Earnings Ratio (P/E)
- Book Value Per Share
- Return on Equity (ROE)
- Revenue Growth
- Profitability Trends
Shareholding Pattern
Understanding who owns the company can provide insights into institutional participation, promoter holdings, and investor confidence.
Peer Comparison
Comparing the company with similar listed or unlisted businesses can help assess whether its valuation appears reasonable.
Investors should use multiple financial and valuation metrics rather than relying on a single indicator.
Tracking developments in unlisted companies can be challenging because they are not required to make the same regular disclosures as listed companies.
Investors should monitor:
Company Announcements
Important developments may include:
- Fundraising activities
- Strategic partnerships
- Business expansions
- Management changes
- Regulatory approvals
Corporate Actions
Investors should track:
- Dividends
- Bonus issues
- Stock splits
- Buybacks
- Rights issues
- Potential IPO developments
Financial Reports
Annual reports and audited financial statements often provide valuable insights into the company's performance and future outlook.
Regularly monitoring company developments can help investors make more informed investment decisions.
Yes. Unlisted Arena follows a transparent and process-driven approach for facilitating transactions in unlisted and pre-IPO shares.
Key safeguards include:
- Secure banking channels only
- Demat-to-demat share transfers
- Documentation and compliance verification
- Transparent pricing
- Dedicated investor support
- Fully traceable transaction records
All payments are accepted only through official banking channels, and shares are transferred through NSDL/CDSL depository infrastructure.
Yes. Buying and selling unlisted shares is completely legal in India when transactions are conducted through proper banking channels and depository systems.
Key requirements include:
- Shares held in demat form
- Transfers through NSDL/CDSL
- Payments through official banking channels
- Compliance with applicable regulations
- Payment of applicable stamp duty and taxes
Investors should always conduct transactions through transparent and documented processes.
From a transaction perspective, unlisted shares are securely transferred through regulated depositories such as NSDL and CDSL.
However, like any equity investment, unlisted shares carry investment risks.
Investors should evaluate:
- Financial performance
- Revenue growth
- Profitability
- Shareholding patterns
- Valuation metrics
- Competitive positioning
- Industry outlook
Conducting proper due diligence before investing is essential.
Whether unlisted shares are a good investment depends on an investor's:
- Financial goals
- Risk tolerance
- Investment horizon
- Assessment of the company
Investors typically evaluate:
- Revenue growth
- Profitability
- Market position
- Valuation metrics
- Future growth potential
- Potential listing opportunities
While unlisted shares may offer attractive upside potential, investors should also consider liquidity constraints, valuation risks, and listing uncertainty before investing.
Investors are attracted to unlisted shares for several reasons:
Early Investment Opportunity
Investors gain access to companies before they become publicly traded.
Portfolio Diversification
Unlisted shares can provide diversification beyond traditional listed equities.
Potential Long-Term Appreciation
If the company performs well and eventually lists, early investors may benefit from value creation over time.
These factors should be considered alongside the risks associated with investing in private market securities.
Investing in unlisted shares involves risks that differ from listed equities.
Liquidity Risk
Finding a buyer may take time because shares are traded privately rather than on an exchange.
Valuation Risk
Prices are driven by private market demand and supply, which may not always reflect intrinsic value.
IPO & Listing Uncertainty
There is no guarantee that a company will launch an IPO or become publicly listed within a specific timeframe.
Market Risk
Changes in economic conditions, industry trends, company performance, and investor sentiment can impact valuations.
Investors should carefully assess these risks before making investment decisions.
Buying unlisted shares is a simple and fully digital process. Investors can purchase unlisted or pre-IPO shares through Unlisted Arena and receive the shares directly in their demat account through a secure off-market transfer.
Step 1: Initiate Contact
Check real-time pricing and availability
Reach out directly to the Unlisted Arena team to register your interest and obtain the latest indicative pricing and availability for the shares you wish to purchase.
Step 2: Submit KYC & Demat Details
Mandatory for off-market transfers
To transfer unlisted shares to your demat account, you will need to provide:
- Client Master Report (CMR): A mandatory document containing your demat account details. It can be obtained from your broker or depository participant.
- PAN Card Copy: Required for verification and compliance purposes.
- Bank Proof (If Required): If payment is made from a bank account not reflected in the CMR, you may be asked to provide a cancelled cheque or bank statement showing account holder details.
Step 3: Confirm the Deal
Official banking channels only
Once your documents are verified and the price and quantity are agreed upon, we will share our official bank account details. Payments are accepted only through secure banking channels such as NEFT, RTGS, or IMPS.
Step 4: Receive Your Shares
T+0 or T+1 delivery turnaround
After payment verification, the shares are transferred directly from our demat account to your demat account through a secure off-market transfer. In most cases, shares are credited on the same day or the next working day, subject to verification and depository processing timelines.
Important Guidelines
? Shares are transferred directly to your demat account.
? The entire process is digital and paperless.
? All transactions are carried out through banking channels and depositories.
? Cash transactions are not accepted.
? Third-party payments and transfers are not permitted.
For assistance with buying unlisted shares, checking the latest prices, or understanding the complete investment process, feel free to contact the Unlisted Arena team.
Since unlisted shares are not traded on stock exchanges such as NSE or BSE, their prices do not appear on standard broker platforms.
The price of unlisted shares is influenced by factors such as:
- Market demand and supply
- Company performance
- Investor sentiment
- Liquidity
- Valuation metrics
- Recent corporate developments
You can track indicative prices and market movements through:
Indicative Price Updates
Check the latest indicative prices on our platform, updated based on prevailing private market activity.
Historical Price Trends
Review historical price charts to understand how valuations have changed over time.
Note: Prices in the unlisted market can change frequently based on market conditions, demand, supply, and company developments.
The minimum lot size for purchasing unlisted shares varies from company to company.
Because unlisted shares often trade in predefined lots rather than individual quantities, the minimum investment amount depends on:
- The company's minimum lot requirement
- The prevailing share price
- Current market availability
Your minimum investment can be estimated by multiplying the minimum lot size by the current share price.
Note: Both pricing and lot sizes may change based on market demand and supply. Investors should confirm the latest availability before executing a transaction.
Investors should choose a platform that offers transparent pricing, secure transactions, prompt share transfers, and complete documentation support.
Unlisted Arena facilitates the purchase and sale of unlisted and pre-IPO shares through secure demat-to-demat transfers and structured transaction processes.
Why Investors Choose Unlisted Arena
Zero Brokerage or Hidden Fees
We operate on a transparent net-rate basis. The quoted price is the final execution price without hidden brokerage charges.
Zero Third-Party Risk
We avoid unverified third-party transactions. By executing trades directly rather than acting as a marketplace intermediary, we reduce external transaction risks.
Fast Delivery Timelines
Once payment and documentation are verified, shares are generally transferred on the same day or the next working day.
Process-Driven Execution
Every transaction follows a structured and compliant workflow through official banking channels and depository systems.
Investors can also explore a wide range of available unlisted and pre-IPO investment opportunities through Unlisted Arena
Yes, Non-Resident Indians (NRIs) can invest in unlisted shares in India, subject to applicable regulations under FEMA and RBI guidelines.
To invest in unlisted shares, NRIs generally require:
NRO Bank Account
The investment is typically made on a non-repatriable basis using an active NRO account.
Non-Repatriable Demat Account
Investors must maintain a valid non-repatriable demat account to receive and hold the shares.
Requirements may vary depending on prevailing regulations and the investor's specific circumstances.
Yes. Various non-individual entities are eligible to invest in unlisted shares.
HUFs
Unlisted shares can be held in the HUF's demat account and managed by the Karta.
Partnership Firms & LLPs
Partnership firms and LLPs can purchase and hold shares through accounts opened in the entity's name.
Trusts
Eligible trusts may invest in unlisted shares subject to their governing documents and applicable regulations.
Corporate Entities
Private limited companies, public limited companies, and other eligible corporate entities can invest through their corporate demat accounts.
Unlisted Arena regularly assists HNIs, family offices, LLPs, trusts, and corporate investors in executing transactions efficiently.
At Unlisted Arena, our approach is built on verified availability, transparency, and compliance.
Our sourcing network may include:
Existing Shareholders
Early investors and shareholders looking to liquidate part or all of their holdings.
Employees Holding ESOPs
Current or former employees who wish to monetize vested Employee Stock Ownership Plans (ESOPs).
Institutional and Strategic Investors
In certain cases, shares may also become available through institutional holders or strategic investors seeking liquidity.
Every transaction is subject to verification, documentation, and compliance checks before execution.
