How to Buy Unlisted Shares: A Complete Beginner's Guide

Have you ever heard about investing in a company before it goes public? That’s what unlisted shares are all about. You don’t need to be a billionaire or a finance wizard to get started. In fact, learning how to buy unlisted shares is simpler than you might think.

Just like buying a rare collectible before it hits the shelves, unlisted shares offer you a unique advantage — you get in early. This guide is here to walk you through everything in plain, simple English.

Whether you're a curious beginner, someone looking to diversify your portfolio, or a student taking the best stock market course India, this article has got you covered.

Learn how to buy unlisted shares, plus tips from the best stock market course India. Discover the best stock market courses in India for smart investing.

What Are Unlisted Shares?

Unlisted shares are shares of companies that are not traded on public stock exchanges like the NSE or BSE. These are usually startups, private companies, or even subsidiaries of larger businesses.

Think of them like local restaurants in your town. They might not be on Zomato or Swiggy, but they still have value — sometimes even more!

Why Do Companies Stay Unlisted?

Not all companies want to go public — and for good reason.

• Lower regulatory pressure: Unlisted companies don’t have to report everything to SEBI.
  
  

• More control: Founders and key investors maintain a tighter grip.
  
  

• Cost-saving: Listing a company can be an expensive and time-consuming process.
  
  

Who Can Buy Unlisted Shares?

Almost anyone can buy unlisted shares — you don’t have to be a big investor. However, a few points to consider:

• You must have a Demat account.
  
  

• You should be ready for long-term investment.
  
  

• It helps to understand the business before buying its shares.
  
  

Even college students from the best stock market courses in India are investing small amounts in unlisted shares to learn and earn.

Benefits of Buying Unlisted Shares

Why would you invest in something not on the stock exchange? Here’s why:

• Early mover advantage: Get in before the crowd.
  
  

• High growth potential: Many unicorns were once unlisted.
  
  

• Diversification: Reduce risk by mixing listed and unlisted investments.
  
  

Risks Involved in Unlisted Shares

With great potential comes great risk.

• Low liquidity: You can’t sell them quickly like regular shares.
  
  

• Limited information: Less data is publicly available.
  
  

• Valuation issues: Hard to judge the fair price.
  
  

But don’t worry. With proper education — like joining the best stock market course India — you can learn how to manage these risks wisely.

How to Buy Unlisted Shares in India

Here's a step-by-step guide to buying unlisted shares:

1. Research the Company: Understand what the business does and its future potential.
   
   

2. Choose a Platform or Dealer: Use reputed platforms like UnlistedZone, EquityZen, or contact authorized dealers.
   
   

3. Negotiate and Agree on Price: There’s often room to bargain!
   
   

4. Make the Payment: Through bank transfer or UPI.
   
   

5. Share Demat Details: So the shares can be transferred to your account.
   
   

6. Get Confirmation: The transfer may take a few days.
   
   

Top Platforms to Buy Unlisted Shares

Here are some trusted platforms where you can explore unlisted shares:

• UnlistedZone
  
  

• Altius Investech
  
  

• Share India
  
  

• Planify
  
  

• EquityZen
  
  

Always ensure the platform is SEBI-registered or tied with trusted intermediaries.

How to Evaluate an Unlisted Company

Before you invest, ask these:

• What does the company do?
  
  

• Who are its founders and investors?
  
  

• Is it profitable or at least growing fast?
  
  

• What’s the competitive edge?
  
  

Use simple tools like financial ratios, business reviews, or consult mentors from the best stock market courses in India to get guidance.

Documents Required to Buy Unlisted Shares

Here’s what you’ll typically need:

• PAN Card
  
  

• Aadhar Card
  
  

• Demat account details
  
  

• Bank details for payment
  
  

It's a fairly simple KYC process.

Taxation on Unlisted Shares in India

Tax rules for unlisted shares are different:

• Held for less than 2 years: Short-term capital gains, taxed as per your income slab.
  
  

• Held for more than 2 years: Long-term capital gains, taxed at 20% with indexation benefits.
  
  

Make sure to consult a tax advisor or check updated rules from official sources.

Liquidity & Exit Options for Unlisted Shares

Getting out isn’t as quick as listed shares, but it’s not impossible.

• Private resale: Sell to another buyer.
  
  

• Buybacks: Some companies buy back their shares.
  
  

• IPO listing: If the company goes public, your shares get listed and tradable.
  
  

Just remember, you might need some patience.

Tips to Safely Invest in Unlisted Shares

Want to avoid scams and bad deals? Follow these tips:

• Verify the source: Always use trusted platforms.
  
  

• Avoid hype: Stick to companies you understand.