Unlisted Shares in India: Hidden Gems or Risky Maze?

Author : Neeraj Sharma | Published On : 16 Jan 2024

What are they? Unlisted shares are company stocks that don't trade on public exchanges. These hidden gems can offer high growth potential and attractive returns, but also carry significant risks due to lack of liquidity and market transparency.

Why invest?

  • Potential for superior returns: Unlisted companies, especially high-growth startups, can outperform their listed counterparts.
  • Early bird advantage: Be among the first investors to capitalize on promising companies before they hit the public stage.
  • Portfolio diversification: Spread your investments beyond traditional instruments to mitigate risk.

Challenges to consider:

  • High risk: Unlisted shares are often illiquid and lack the regulatory oversight of listed shares, making them riskier investments.
  • Limited information: Due diligence requires extra effort as financial information might be scarce or opaque.
  • Finding genuine opportunities: Navigating the unlisted market can be tricky, requiring expertise and reliable sources.

How to navigate?

  • Seek professional guidance: Consider partnering with a reputable broker like Parasram, specializing in unlisted shares and offering research, due diligence, and transaction support.
  • Thorough research: Don't rely solely on promises. Analyze the company's financials, business model, and management team before investing.
  • Long-term commitment: Be prepared to hold unlisted shares for extended periods due to limited liquidity.

Parasram: Your Guide in the Unlisted Maze

  • Years of experience: With over 30 years in the market, Parasram has a proven track record of helping investors unlock the potential of unlisted shares.
  • Expertise and research: Their dedicated team provides in-depth research reports and due diligence on promising companies.
  • Personalized approach: They understand your risk tolerance and goals, crafting customized investment strategies for your success.
  • Seamless platform: Manage your unlisted portfolio conveniently through their secure and user-friendly platform.

FAQ:

  • Q: Are unlisted shares legal? A: Yes, investing in unlisted shares is legal in India, but regulations differ from listed shares.
  • Q: How do I sell unlisted shares? A: Selling can be challenging due to limited buyers. Brokers like Parasram can help you find potential buyers.
  • Q: What are the tax implications? A: Consult a tax advisor for specific details, but capital gains tax applies to both buying and selling unlisted shares.

Remember, unlisted shares are not for everyone. Carefully assess your risk tolerance, investment goals, and knowledge before taking the plunge. With thorough research, professional guidance, and a trusted partner like Parasram, you can navigate the unlisted market and potentially tap into its hidden treasures.