Definition of Unlisted Securities.
- The shares which are not listed on stock exchanges are referred as unlisted shares/stocks (Securities)
- Unlisted shares are bit riskier investment than listed shares, since it’s not listed and liquidity is limited.
- Transparency in unlisted stocks is not up to the mark, compared to listed stocks. However, Unlisted stocks have more stable valuation compared to listed equity & have more growth potential and return can be much higher.
Is it safe to buy unlisted shares?
- Generally, unlisted shares trade through some intermediaries, which are not regulated or in other words, it’s not organized.
- Unlisted shares are generally traded through big brokerage Houses, or through institutional clients.
- Risk in Unlisted securities is much higher. Since it’s not certain whether the company will go public in time bound manner or not/the price of unlisted securities will increase or not ? Moreover, company will outperform or it will continue in business before listing etc.
Tax Implications
- Unlisted shares if sold within 24 months, then short term Capital Gain Tax will be applicable on the Generated profit.
- If it’s sold after 24 months, then long-term Capital Gain Tax will be applicable with indexation benefit.
- If the unlisted shares get listed on the stock exchange\s and client sold their investment, the tax implication will be as per listed equity shares.
Being a channel partner/authorized person, we are providing both side quotes for unlisted securities. One can contact us for list of unlisted securities available for buying\selling. Please fill up inquiry form given on website, and our representative shall revert you.
Investment in security/security markets are subject to market risk. Please read all the related documents carefully before investing.
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