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Unlisted Shares in India: What They Are & How to Buy

By FinvestMart · Updated July 2026

Unlisted shares are equity shares of companies not yet listed on a stock exchange like the NSE or BSE — often startups or pre-IPO firms. You buy them privately, aiming to gain if the company later lists or grows. They offer high potential but carry higher risk and lower liquidity. FinvestMart helps you explore unlisted shares with expert guidance.

What are unlisted shares?

Unlisted shares are stakes in companies that have not done an IPO, so they don't trade on a public exchange. Investors buy them through private deals or specialised platforms, hoping to benefit when the company eventually lists, gets acquired, or grows in value. They are held in your demat account just like listed shares.

How to buy unlisted shares in India

Open or use an existing demat account.
Buy through a trusted dealer or platform that sources genuine unlisted shares.
Complete the transfer and payment; shares are credited to your demat.

FinvestMart helps you access unlisted opportunities and complete the process safely.

Risks and things to know

Lower liquidity — they can be harder to sell than listed shares.
Valuation and information are less transparent than public companies.
There is no guarantee a company will list or that its value will rise.

Invest only a considered portion of your portfolio and do your own due diligence.

How are unlisted shares taxed?

Gains on unlisted shares held beyond the qualifying period are treated as long-term capital gains, while shorter holdings are taxed as short-term gains. Tax rules for unlisted shares differ from listed shares and can change, so consult a tax advisor for your specific situation.

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Frequently asked questions

What are unlisted shares?

Unlisted shares are equity shares of companies that have not yet listed on a public stock exchange such as the NSE or BSE. They are often shares of startups or pre-IPO companies, bought privately and held in a demat account.

How can I buy unlisted shares in India?

You buy unlisted shares through a trusted dealer or a specialised platform, using a demat account. After payment, the shares are transferred to your demat. FinvestMart helps you access genuine unlisted opportunities and complete the process.

Are unlisted shares risky?

They carry higher risk than listed shares because they are less liquid, harder to value, and there is no guarantee the company will list or grow. They can offer strong returns but should be only a considered part of a diversified portfolio.

How are unlisted shares taxed in India?

Gains depend on how long you hold the shares — longer holdings are treated as long-term capital gains and shorter ones as short-term. The rules for unlisted shares differ from listed shares and can change, so consult a tax advisor.

Does FinvestMart help with unlisted shares?

Yes. FinvestMart helps you explore available unlisted and pre-IPO opportunities and guides you through buying them safely with expert support.

Investing in unlisted shares carries higher risk, including illiquidity and possible loss of capital. This is general information, not investment advice. Consult a qualified advisor and do your own research before investing.