Unlisted shares are equity shares of companies that are not listed on any stock exchange and, therefore, do not trade publicly.

Investors can buy unlisted shares through private deals with existing shareholders, employee stock option plans, or through intermediaries such as UnlistedHub that specialize in unlisted securities.

1. Limited Liquidity: Unlisted shares often have lower trading volumes, making it challenging to sell the shares quickly or at the desired price.
2. Lack of Transparency: Unlisted companies are not bound by stringent disclosure norms like listed companies, which can lead to a lack of timely and detailed information about the company’s performance.
3. Regulatory Risks: The unlisted space is less regulated compared to the listed markets, which can increase the risk of fraudulent activities.
4. Valuation Concerns: Determining the fair value of unlisted shares can be challenging due to the lack of readily available market data.

While unlisted shares are not as tightly regulated as listed shares, SEBI does have guidelines to protect investors in unlisted public companies.

Yes, but they must comply with FEMA (Foreign Exchange Management Act) regulations, and there may be additional conditions or restrictions based on the sector

Yes, NRIs can invest in unlisted shares in India. As per regulatory requirements, NRIs can use their NRO (Non-Resident Ordinary) accounts for such investments. The process involves transferring funds from the NRO account for purchasing the unlisted shares, which will also be credited to the NRO Demat account. However, it’s essential to note that NRE (Non-Resident External) accounts are not commonly used for these transactions due to the complexity of FEMA (Foreign Exchange Management Act) regulations involved

To buy unlisted shares in India, NRIs must submit the following KYC documents:

1.  CML (Client Master List) Copy: This document contains vital information like DP ID, Client ID, PAN number, and Bank details.
2. PAN Card: A copy of the Permanent Account Number card is essential.
3. Cancelled Cheque: A cancelled cheque from the NRO account is required to ensure the account details are accurate and valid.

The timeline for crediting unlisted shares to your Demat account after purchase can vary. Typically, the shares are credited on the same day as the funds are transferred to the seller’s account. However, this is subject to the completion of all necessary formalities and the time of fund transfer. If funds are credited before 2 PM, the transfer of shares is usually done within 24 hours. Delays might occur due to holidays or other non-working days.

1. Transaction Time: If the payment is made late in the day, the process might carry over to the next working day.
2. Completion of KYC: Delays in submitting or verifying KYC documents can delay the process.
3. Bank and Demat Account Det ails Accuracy: Any discrepancies in bank or Demat account details can lead to delays.
4. Holidays and Weekends: Transactions initiated on weekends or holidays will be processed on the next working day.

When you sell unlisted shares in India, the gains are subject to capital gains tax. The type of tax depends on the holding period:

• Short-Term Capital Gains (STCG): If you sell the shares within 24 months of purchase, the gains are treated as short-term and taxed as per your income tax slab rates.
• Long-Term Capital Gains (LTCG): If the shares are held for more than 24 months, the gains are long-term and taxed at 20% with indexation benefits.

1. Proven Track Record: We have a solid history of successful transactions and satisfied clients. Our reputation in the market is built on consistent, reliable service.

2. Transparent Operations: We believe in complete transparency. Detailed information about each unlisted share, including risks, valuation, and legal considerations, is openly shared with our clients.

3. Regulatory Adherence: Compliance with SEBI regulations and other legal requirements is at the core of our operations, ensuring that every transaction is legitimate and secure.

4. Exceptional Customer Support: Our dedicated customer service team is always ready to assist you, providing professional guidance throughout your investment journey.

5. Expertise in the Market: Our team’s extensive knowledge of the unlisted share market is invaluable in helping you make informed investment decisions.

6. Security and Confidentiality: We prioritize the safety and privacy of your financial information, employing robust systems to protect your data.

7. Detailed Documentation: We guide you through the entire process, assisting with all necessary documentation for a seamless transaction experience.

8. Independent Verification: For added assurance, we encourage you to seek advice from independent financial advisors or legal experts.

At UnlistedHub, we have a comprehensive and strategic approach to sourcing unlisted shares, ensuring a diverse and quality portfolio for our investors. Our shares are primarily sourced through:

1. Employee Stock Ownership Plans (ESOPs): We acquire shares from employees of various companies who have been allocated shares as part of their compensation package.

2. Initial Investors and Stakeholders: We engage with early investors, including angel investors and venture capitalists, who are looking to liquidate their holdings in companies.

3. Direct Company Allotments: In some cases, we directly acquire shares from the companies themselves, especially during additional rounds of funding or private placements.

4. Secondary Market Transactions: We also source shares through secondary market transactions, where we buy from existing shareholders looking to sell their stakes.

Our team diligently conducts thorough due diligence on each sourcing channel to ensure the authenticity and legality of the shares.

We also keep abreast of market trends and corporate developments to identify potential investment opportunities for our clients.

For more information on our share sourcing processes or to explore current investment opportunities with UnlistedZone, please feel free to reach out to us.

According to SEBI regulations, unlisted shares must be locked in for six months beginning on the listing date if an unlisted firm plans to go public through an IPO (Initial Public Offering).