How to buy unlisted shares in India
Unlisted shares are equity in companies not yet listed on a stock exchange — a way to invest before a public listing. They trade off-market and settle into your demat account. Here is how the process works, end to end. This page is information and education, not investment advice.
- Unlisted shares are equity in companies not yet listed on a stock exchange; they trade off-market.
- You need an active demat account (NSDL or CDSL) — no special account type is required.
- Prices are indicative reference figures from private transactions, not live exchange quotes.
- Shares are delivered into your own demat account via an off-market transfer, with a contract note.
- Shares acquired before listing are typically subject to a SEBI lock-in after the company lists.
- Unlisted shares carry higher risk and lower liquidity than listed shares.
How do you buy unlisted shares in India?
- 1
Open a demat account
Unlisted shares settle in dematerialised form, so you need an active demat account with any depository participant (NSDL or CDSL). No special account type is required.
- 2
Choose a company and check the indicative price
Browse companies and their indicative unlisted-market prices, financials and research. The indicative price is a reference figure from private transactions, not a live exchange quote.
- 3
Agree the price and quantity
Unlisted shares trade off-market, so the price and minimum lot are negotiated between buyer and seller through a registered intermediary. Confirm the per-share price, lot size and total amount before proceeding.
- 4
Complete the transfer and settlement
On payment, the seller transfers the shares into your demat account (an off-market transfer). You receive a contract note and the shares reflect in your holdings, typically within a few working days.
- 5
Hold, track and exit
Track the company's indicative price and fundamentals over time. Exit is via another off-market sale, or on the stock exchange after the company lists (subject to any lock-in).
What documents do you need to buy unlisted shares?
- PAN card
- An active demat account (NSDL or CDSL) — DP ID and Client ID
- KYC identity and address proof
- A bank account for payment
- Client Master Report (CMR) for the off-market transfer
Frequently asked questions
Yes. Buying and selling unlisted shares is legal in India. Transactions happen off-market through registered intermediaries and are settled in demat form via NSDL or CDSL.
Often, yes. Under current SEBI rules, shares bought before a company lists are typically subject to a lock-in period after listing. Any applicable lock-in is confirmed at the time of the deal.
Unlisted shares are treated as long-term capital assets after 24 months. Gains are taxed accordingly, and short-term gains are added to income. Tax rules change over time — consult a qualified tax advisor for your situation.
Unlisted shares carry higher risk and lower liquidity than listed shares. There is no continuous market price, exit can take time, and disclosures are more limited. They suit informed investors who understand these trade-offs.
It varies by company. Each share has a minimum lot size, so the minimum ticket is the indicative price multiplied by that lot. You can see the lot size and indicative amount on each company page.
You typically need a PAN card; an active demat account (NSDL or CDSL) with its DP ID and Client ID; KYC identity and address proof; a bank account for payment; and a Client Master Report (CMR) for the off-market transfer. Your intermediary confirms the exact list before the deal.
Disclaimer: BuyUnlistedShares provides factual information and research, not investment advice. Unlisted shares carry higher risk and lower liquidity than listed shares. Reviewed by Kanishk Dev Bangia (NISM-202300182946).