How to Buy Unlisted Shares

For investors seeking opportunities beyond the stock exchange, unlisted shares have become an attractive option. These are shares of companies that are not listed on recognized stock exchanges like NSE or BSE but are available for trading in the private market. With the rise of startups, pre-IPO opportunities, and growing interest in alternative investments, unlisted shares have gained attention among investors in India.

In this blog, we’ll explore what unlisted shares are, how you can buy them in India, and how JM Financial Services can guide you through this process.

What Are Unlisted Shares?

Unlisted shares are the equity shares of companies that are not officially listed or traded on public stock exchanges. Investors buy them through private deals, intermediaries, or platforms that deal in such securities.

Examples of companies whose unlisted shares attract investor interest:

• Pre-IPO companies preparing to get listed.
• Prominent startups and unicorns.
• Subsidiaries of listed companies.

How to Buy Unlisted Shares in India?

Buying unlisted shares is different from purchasing listed stocks on NSE or BSE. Here’s a step-by-step guide:

1. Through Intermediaries and Brokers
   Specialized intermediaries, including wealth management firms like JM Financial Services, can help investors access unlisted shares through private placements.
2. Via Private Transactions
   Investors may acquire shares directly from existing shareholders, such as employees with ESOPs (Employee Stock Option Plans).
3. Through Startups and Pre-IPO Placements
   Investors can participate in early-stage funding rounds or pre-IPO placements facilitated by investment banks and financial advisors.
4. Through Alternative Investment Platforms
   Some digital platforms offer curated opportunities in unlisted shares. However, working with a trusted financial partner like JM Financial Services ensures transparency and due diligence.

Things to Consider Before Investing

• Liquidity Risk – Unlisted shares are less liquid compared to listed stocks.
• Valuation Risk – Pricing is not regulated by exchanges, so valuations can vary.
• Regulatory Norms – Ensure compliance with SEBI and RBI guidelines.
• Long-Term Horizon – Typically suited for investors with patience and risk appetite.

Why Choose JM Financial Services?

JM Financial Services offers:

• Access to pre-IPO and unlisted share opportunities with reliable market research.
• Expert advisory services for portfolio diversification.
• Seamless transactions with end-to-end support for compliance and documentation.
• Long-term wealth management strategies aligned with your financial goals.

With JM Financial Services, you can explore unlisted shares with confidence and professional guidance.

FAQs :-

Q1. Can retail investors buy unlisted shares in India?
Yes, retail investors can buy unlisted shares through intermediaries, wealth managers, or private transactions.

Q2. Are unlisted shares safe to invest in?
They carry higher risk due to low liquidity and unregulated valuations, but also offer potential for higher returns, especially if the company goes public.

Q3. How do I sell unlisted shares?
You can sell through intermediaries, private buyers, or when the company lists on NSE/BSE. JM Financial Services can help in identifying exit opportunities.

Q4. Do unlisted shares offer dividends?
Yes, if the company declares dividends, unlisted shareholders are eligible to receive them.

Q5. Is investing in unlisted shares suitable for short-term goals?
No, they are better suited for long-term investors with higher risk tolerance.