Frequently Asked Questions-FAQs

Got Questions? – We have answers for all your basic to advance level queries

About Unlisted/Pre-IPO Shares?

Basic queries

What are Unlisted/Pre-IPO Shares?

Unlisted Shares are shares that are not traded/listed on stock exchanges. However, they are traded over-the-counter in Unlisted Market which is also called Private Market. There are certain companies whose shares are available in unlisted market before their IPO. Investing in such companies is called Pre-IPO Investing.

Are the Unlisted shares in demat form?

Yes, all the Unlisted Shares in which we deal are in demat form, same as any listed shares. When an investor buys this unlisted shares, they are reflected in their demat account instantly.

If the company is not listed, how can it be in demat form?

Any company, be it listed or unlisted can have its shares dematerialized with depositories (NSDL and/or CDSL). Listed shares are tradeable on stock exchange while Unlisted Shares are traded in over-the-counter/Private Market. Hence listed and unlisted shares, are both stored in demat account only.

Is Buying Unlisted Shares Legal in India?

Yes. Buying unlisted shares is 100% Legal. The payment of the shares is generally made through bank account and shares are stored in demat account.

Can a retail investor buy unlisted shares?

Yes, we at Unlisted Arena facilitate investment to retail as well as HNI Investors.

What is the minimum amount required to invest?

Every unlisted shares have different minimum investment. However, we at Unlisted Arena strive to keep the minimum investment limit as low as possible. On an average minimum investment can be in range of INR 25000-50000.

Is the company involved in selling unlisted shares?

The company (whose Unlisted/Pre-IPO shares are traded) is not involved directly or indirectly in such dealings

If the company is not involved, how come the shares get traded in unlisted space?

The company may have existing investors, employees who are looking for liquidity as many companies issues shares to PE investors and ESOPs to employees. Unlisted Arena facilitates the shares from such sources and enables the retail as well as HNI investors to make investment in such rare opportunities which is usually available to only big ticket funds and private equity investors

What is the role of Unlisted Arena here?

Unlisted Arena facilitates such Unlisted/Pre-IPO shares which are not easily available to the Investors. Unlisted Arena provides you the opportunity to invest in such quality companies which is not available to the investors at large

How to trade in Unlisted Shares/Pre-IPO Shares?

Process & Advance level queries

How to buy unlisted shares?

Process of Buying Unlisted Shares

  1. Get connected with us and inquire for the Unlisted/Pre-IPO shares in which you are Interested.
  2. We will quote the current prevailing market rates of the shares (Subject to availability)
  3. If you agree on the rate and quantity, we will send our bank details. (Please note, we accept payment only through bank)
  4. Buyer transfers the fund in our bank account and buyer also need to send their demat details (for initiating share transfer process)
  5. Post receiving funds and demat details, we initiate share transfer. The shares usually gets transferred on same/next working day in your demat account
  6. For detailed buying process, refer – here

How to sell unlisted shares?

One can sell Unlisted/Pre-IPO shares anytime before its IPO to any buyer in unlisted market. We also help in liquidating such shares (subject to availability of buyer). The Pre-IPO shares gets locked for a period of six months from date of its IPO allotment.

What is the lock-in period for Pre-IPO shares?

As per the SEBI rule, the Pre-IPO shares shall have a lock-in period of Six Months starting from the date – when the company declares its IPO allotment. Post six months, the shares will get free from lock automatically in your demat account and you will be free to sell those shares just like selling any other listed stocks on exchanges

Can I buy shares of every company before IPO?

No, only limited companies are available for Pre-IPO investment. You can browse the list of available Pre-IPO/Unlisted Shares- here

What are the charges for buying Unlisted/Pre-IPO shares?

We at Unlisted Arena always quote the net rate per share and we do not charge any extra or hidden charges or commission over net rate. All the expenses in relation to share transfer (Share transfer charges, Stamp-Duty, etc) are paid by us.

Do I need to open any separate demat account for buying Unlisted/Pre-IPO shares?

Absolutely No. You do not need to open separate demat account for buying Unlisted/Pre-IPO shares. Your existing demat account is sufficient to buy and hold such shares

How much time does it takes to get shares credited in my demat account?

We at Unlisted Arena are the fastest in terms of delivering the shares. The shares usually gets transferred on the same working day in most cases or the next working day.

How to check my holdings of Unlisted/Pre-IPO shares?

Once the shares gets transferred to your demat account you can easily check it in your Depository Holdings- also called DP Holdings (in your demat account (in mobile/desktop login of your broker. One can also check the shares by installing CDSL/NSDL app on real time basis

How do I check latest rates of Unlisted/Pre-IPO Shares?

Although, there is no official source to check rates of Unlisted/Pre-IPO shares (as there is no uniform rate in unlisted market) We at Unlisted Arena regularly update rates on our website and telegram channel

Will I be able to get dividends, bonus etc- corporate actions?

Yes, definitely. If there is any corporate action pertaining to Unlisted/Pre-IPO shares and if you are holding the shares on respected record date, you will be eligible for such corporate actions. (just like listed shares)

What are the risks of investing in Unlisted/Pre-IPO shares?

Compared to Listed space the liquidity is less in Unlisted/Pre-IPO market. It may be possible that any company may postpone or abandon its listing plans. (However, if the company performs well and does not have IPO Plans, the rates in unlisted market may appreciate) To understand more for the subject kindly visit ‘Do’s and ‘Don’t Page

Why to trust Unlisted Arena?

As you have gone through the process, you must have noticed that one has to make advance payment for buying such shares, no matter from which vendor you buy. Here comes the risk of frauds, hence you need to deal with someone who has credibility and standing in the market.  We at Unlisted Arena sincerely understand your concerns. You need not to worry when you deal with Unlisted Arena. We accept payment only through bank. We have more than 10 years of combined experience in the field. In Short span, Unlisted Arena has been able to make a remarkable name in Indian Unlisted/Pre-IPO space. Our Co-founders, Mr. Abhay Doshi & Mr. Manan Doshi are regularly featured in India’s leading Financial media like Economic Times, CNBC TV-18, MoneyControl, LiveMint, Financial Express, IndiaToday, The Ken, etc for their views on Unlisted Market & IPOs. You can check our Media features here.

What is the time horizon for investment in Unlisted/Pre-IPO shares usually?

Usually, Unlisted/Pre-IPO Investments are more feasible for long term.

What are the Tax Implications for Unlisted/Pre-IPO Shares?

  • Long Term Capital Gains Tax: If unlisted shares are sold after holding for more than 24 months, gains on such sale will be taxed at 20% after indexation.
  • Short Term Capital Gains Tax: If unlisted shares are sold in 24 months or less, gains from such sale are taxed at the slab rate.
  • Tax on Capital Gains on Unlisted Shares that are sold after getting listed: The tax rates will be the same as that on purchase and sale of listed shares.
    That is, the long-term gains (shares sold after holding for more than one year) will be taxed at 10% after a threshold of ₹ 1 lakh per financial year.
    Short-term gains (gains on selling shares in one year or less) will be taxed at 15%.
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