Step-by-Step Guide to Buy and Sell Unlisted Shares & Pre-IPO Shares in India (With Trusted Brokers)

What Are Unlisted Shares?

Unlisted shares are stocks of companies not listed on formal stock exchanges like NSE or BSE. These shares are traded in the over-the-counter (OTC) market or through private platforms before companies go for an Initial Public Offering (IPO).

Why Invest in Unlisted or Pre-IPO Shares?

• • High growth potential before listing
  • Diversification in portfolio
  • Opportunity to invest early in startups or private companies
  • Long-term capital gains if listed later

Step-by-Step Process to Buy and Sell Unlisted Shares in India

Step 1: Choose a Trusted Platform or Broker

Some of the most trusted brokers for unlisted shares in India include:

• • UnlistedZone
  • Share India
  • Planify
  • Dealmoney
  • Analah Capital
  • Wealthy.in

Make sure to check their reviews, fee structure, and track record before choosing.

Step 2: Do Your Research

• • Study the company’s financials (if available)
  • Analyze business model, management, and valuation
  • Track previous investors or institutions involved

Step 3: Contact the Broker and Share Interest

Once you finalize a broker, contact them to express your interest. They’ll provide you with a quote and share details.

Step 4: Complete KYC Formalities

Submit your PAN, Aadhaar, Demat account details, and complete KYC with the broker.

Step 5: Execute the Transaction

• • Fund the deal through NEFT/RTGS
  • Shares are transferred via off-market transfer to your Demat account
  • Delivery time is usually 2–3 working days

Step 6: Track Performance and Exit

You can either:

• • Sell off-market through the broker
  • Wait for a listing and exit via stock exchange
  • Transfer to another buyer directly

Where to Find Unlisted Shares for Sale?

You can find opportunities through:

• • Online platforms like UnlistedZone, Planify, Your broker’s desk
  • Startup and private company investors
  • Telegram/WhatsApp groups (use with caution)

Risks Involved in Buying Unlisted Shares

• • Illiquidity: Harder to sell compared to listed stocks
  • Lack of transparency
  • Regulatory risks
  • Valuation discrepancies
  • No guarantee of listing

How to Ensure Security and Legitimacy?

• • Always work with SEBI-registered brokers
  • Ensure off-market transfer is executed correctly
  • Verify company credentials (ROC records, MCA filings)

Best Trusted Brokers for Unlisted Shares in India (2025)

Commonly Bought Pre-IPO Shares in India

Some of the most sought-after pre-IPO stocks in India include:

• • Tata Technologies
  • OYO Rooms
  • PharmEasy
  • Reliance Retail
  • NSDL
  • Capgemini India

Tax Implications of Unlisted Shares in India

Conclusion

Investing in unlisted shares or Pre-IPO stocks in India can be a lucrative yet risky opportunity. Always ensure proper research, due diligence, and broker verification. If done right, it can yield significant returns once the company goes public.

FAQs – Buy and Sell Unlisted Shares in India

❓ Can anyone buy unlisted shares?

Yes, any investor with a valid Demat account and KYC documents can buy unlisted shares.

❓ Is it safe to invest in Pre-IPO shares?

It can be safe if done through reliable brokers and with proper research.

❓ How are unlisted shares taxed?

They are taxed under capital gains, with different rules for short-term and long-term holdings.

❓ Can I sell unlisted shares anytime?

No, liquidity is limited. You need to find a buyer through a broker or wait for listing.