Unlisted shares

The popularity of unlisted shares has grown as a result of the competition between new-age companies to reach the necessary threshold for being listed on the stock market. The majority of unlisted stocks are related to start-ups or small businesses. Evidently, small businesses have a smaller basis and hence expand more quickly than well-established businesses. In contrast to investing later, investing in a start-up at an early stage will benefit the investor more because it will result in greater profits and ownership holdings. Early investment in a start-up not only promises higher returns but also makes sure the investor provides guidance and decisions to the business. Every stage that a startup goes through presents different opportunities and risks for investors. Investment in unlisted stocks comes with its own share of risks and rewards. Every investor must know the risks and returns associated with every type of investment before choosing to invest. This will help them plan their finances better and set realistic investment goals. The risk associated with investment in Unlisted Shares Every investor should carefully assess the risks before investing in Unlisted shares – - Risk of liquidity Investors do pre-IPO investing in unlisted shares with the hope of making huge profits once they get listed on the stock exchange. It is not easy for investors to convert unlisted shares into cash. This means investors may be unable to exit from their investment in an emergency w...

Unlisted share markets have gained popularity over the years in recent history. Investors with sound wisdom, strong financial health, and a long investment horizon buy stakes in growing companies, even before their IPO, and see the real magic of compounding. This has lured many new-age investors to head to the pre-IPO market, without proper knowledge and guidance and invest a big chunk in the unlisted. In this article, we will try to explain to you how an unlisted market actually works and how one should make the strategy to invest in this market. We will focus on the various dimensions of unlisted shares and their features so that it becomes easy for you to decide whether this market is for you or not. Key features of unlisted stocks: 1. Not traded on Exchanges: Unlike the listed peers, shares of unlisted companies are not traded officially on a particular exchange. There is a separate market for this segment, where buyers and sellers operate via dealers. 2. Dematerialized: Just like listed stocks, unlisted stocks are also transferred within your Demat account. One can check the status of the unlisted shares bought via the depository participant account, where they are available at face value. 3. Price Mechanism: Unlisted markets are a pure game of supply and demand, which actually test the wisdom of an investor. Since the exchanges are not involved in this mechanism, the fair price discovery is always under scrutiny. The price of a share is fixed by mutual understanding ...

With explosive growth in the number of retail investors in the country and market valuations at high levels, there is a chase for better returns from alternative investment avenues. There are increasing enquiries about investing in unlisted shares. However, this segment is a minefield; unless investors exercise utmost care, investment in this space is extremely risky. Unlisted shares are securities or financial instruments that are not listed in the stock market. Since the stock market is well regulated by the SEBI, and market pricing and disclosures are transparent, the risk in investing is relatively lower. This transparency and regulation is not available in the unlisted space.

Unlisted Shares What are unlisted shares? Unlisted shares, also known as off-market stocks, are not traded on traditional/regulated stock exchanges. These shares have a higher risk as they are less liquid than listed shares, and their valuations are less transparent. However, investing in a well-chosen unlisted share with growth potential can lead to substantial returns once it gets listed, making them a good investment opportunity. Things to consider / Unlisted Shares Facts / Pros and Cons • Unlisted shares trade over the counter (OTC). The buyer and seller connect via intermediaries to perform the trade directly. • These shares bear a credit risk since government entities do not regulate the trades. • Choosing the right intermediary for trading in unlisted shares minimizes risk significantly. • Unlisted shares are generally traded between companies, big brokerage houses, and HNIs or institutional clients. • You need to analyze the company’s fundamentals and other factors in-depth before investing in any unlisted share, as circumstances can move sideways easily. • Unlisted shares can be a hidden gem and provide exponential returns if you pick the right one. Tax Implications Unlisted shares have different tax implications compared to listed shares. Short-term capital gains tax (at a marginal rate) applies if sold within 24 months. Long-term capital gains tax (20%) with indexation applies if sold after 24 months. Profits are calculated based on the Fair Market Value (FMV) u...

What are Unlisted Financial Instruments? Unlisted financial instruments are securities that do not trade on a formal stock exchange like NSE or BSE because they do not meet specific listing requirements. Unlisted securities are traded on the over-the-counter (OTC) market and are commonly referred to as OTC securities. Market makers, also known as dealers, facilitate the purchase and sale of unlisted securities on the OTC market. Common stock is the most well-known type of unlisted security. Other instruments include government securities, corporate bonds, and certain OTC derivative products such as swaps. The normal risks of investing are heightened when dealing with unlisted securities. The basic requirements of the listed company like the company size, market capitalization are eliminated in the unlisted companies. Some entities may have highly risky business plans, and be nothing more than an idea with no plan for success. Other risks include liquidity risk, interconnection risks, and counterparty risk. What are Listed Shares? If a company’s shares are traded on an official stock exchange it is called Listed Shares. Companies such as HDFC Bank, Nestle, and ITC, are all listed on the What are Unlisted Shares? Unlisted companies are those that are privately held and have not yet gone through the Types of Unlisted Companies 1- Companies that are subsidiaries of well-known parent companies. Examples include HDB Financial Services (a leading NBFC which is a subsidiary of HDF...

NSE Unlisted Shares: A Comprehensive Analysis of FY23 Financial Performance The National Stock Exchange (NSE), one of India’s leading stock exchanges, has shown a remarkable financial performance in FY23. This article will delve into the details of NSE’s financials, highlighting the key factors contributing to its growth and comparing its valuation with the Bombay Stock Exchange (BSE). Revenue Growth: A Surge in FnO Volumes In FY23, NSE reported a revenue of 12765 Cr, a significant increase from the 8873 Cr in FY22. The primary driver for this revenue growth has been the substantial increase in Futures and Options (FnO) volumes. The surge in FnO volumes indicates a growing interest among investors in derivative trading, which has proven to be a lucrative business segment for the exchange. Fiscal Year Equity (Index and Stock) Volume (Lk Cr) Currency Volume (k Cr) FY20 14 41 FY21 27 50 FY22 71 87 FY23 153 155 Please note that “Lk Cr” stands for Lakh Crores and “k Cr” stands for Thousand Crore Expense Management: An Increase in Operational Costs On the expense front, NSE’s expenses increased from 2008 Cr in FY22 to 2608 Cr in FY23. This rise in expenses, despite the increase in business volumes, could be attributed to various factors such as expansion initiatives, technology upgrades, or regulatory costs, which need to be examined in detail. Profit After Tax (PAT) and Earnings Per Share (EPS) Due to the impressive revenue growth and not much rise in expenses, NSE’s Profit Aft...

BluSmart is a ride-sharing service and platform, headquartered in Gurugram, India. It is the first zero emission ride-sharing marketplace that aims to build mobility smarter, safer and more sustainable. Here we will describe BluSmart Mobility Share price and its business model. The company is rebuilding mobility for better customer experience and environmentally sustainable society. A Case Study on BluSmart’s role in addressing the problems of climate change and its emergence as the most preferred mode of transportation for urban commuting was published by The World Business Council for Sustainable Development (WBCSD). • Better customer experience: Without ride denials, zero surge pricing, highest standard of safety and sanitisation, and high quality service. • Better work-life balance of driver partners: Flexible working hours, higher earnings, and no tension of vehicle ownership. • Environmentally sustainable: Full stack zero emissions ride-hailing service in mega cities of India. BluSmart Unlisted Share Price Before investing and trading in BluSmart Mobility shares, it is important to know about BluSmart Unlisted share price, market cap, business model, financial growth, valuation, or its share price history (unlisted share price) beforehand. BluSmart Mobility Share Price BluSmart Mobility Unlisted Share Price History BluSmart Mobility Unlisted Share Price 4844.00 – 2550.00 52 week High 4844 52 Week Low 0 Sector Automotive electric vehicles Type Private Category Pre IPO...

Outlook Money Are You Investing In Unlisted Shares? Here’s The Process And Tax Compliances Of late, unlisted shares and shares of unlisted start-ups have caught the attention of investors. But should you also blindly follow the trend and invest in them? Here are the details • • • • • Unlisted shares of Chennai Super Kings (CSK), the only sports franchise which can be traded in India Unlisted shares of Chennai Super Kings (CSK), the only sports franchise which can be traded in India, jumped 25 per cent at Rs 200-205 per share and pushed CSK’s valuation to Rs 6,300 crore just before the Indian Premier League (IPL) season earlier this year. The emergence of many retail focussed un-listed shares investment online platforms has now made it easy for many retail investors to invest in unlisted shares. This was not possible a decade ago, says Vinay Bansal, founder and CEO, Inflection Point Ventures, a Gurgaon-based angel investmentcompany. “But now the unlisted shares investment market has opened for retail and the process can be done online too,” he says. Vijay Kuppa, co-founder and COO, Orowealth, a stock broking and alternative investment platform, says that the entire process and compliance for buying unlisted shares now typically takes ‘T+3 days."There is a six-month lock-in for the shares post listing. However, before listing, there is no restriction on selling of shares,” he adds. What Is The Process? According to Prashant Narang, co-founder, Agility Ventures, a Haryana-bas...