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Please find below the procedure for buying Unlisted Shares at UnlistedZone.
Important Note: Please note that the lock-in period for selling Unlisted Shares is 6 months after listing. Hence you can’t sell Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at email@example.com
Please find below the procedure for selling Unlisted Shares at UnlistedZone.
Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.
Lock-in period of Unlisted Shares depends upon category of investors.
This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.
DIS – Delivery Instruction Slip is the way through which an investor can sell or transfer the Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.
Read our article to understand more about this. https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/
In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today’s scenario. So, via our UnlistedZone platform, if somebody wants to buy Unlisted Shares then minimum investment would be 35-50k.
Yes, buying and selling of unlisted shares in India is 100% legal.
If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.
If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.
After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.
If you buy Unlisted Shares from UnlistedZone then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.
Check credit of Unlisted Shares Instantly?
The Unlisted Shares are credited in demat account same day of transferring funds in our company’s bank account.
The price of Unlisted Shares can be checked in two ways.
First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning. Join Now
Secondly, you can download our application from Playstore to see the historical graphs and prices of all the shares at one place. Download Now
If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.
“UnlistedZone is India’s fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, UnlistedZone has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with UnlistedZone.”
We at UnlistedZone do the valuation based on 2 methods.
As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.
We source shares either from the employees or initial investors looking to liquidate their Unlisted Shares.
Pre-IPO shares means which are planning for an IPO in near future. However, all the shares which are traded on the platform are not Pre-IPO Shares.
The investors should not be worried even if the unlisted shares has no plans for IPO, because if the company’s business is going good then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their Unlisted Shares in the unlisted market itself.
Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.
Stamp duty is the compulsory tax which clients need to pay whenever they sell any unlisted shares in India via OTC (Over the Counter) transactions. If you do not pay stamp duty and simply transfer the unlisted shares then your DP(Depository Participant) will reject the transfer of unlisted shares. So, remember to pay stamp duty before transfer.
If the client is selling shares worth Rs. 1,00,000 then he/she needs to pay Rs. 15 as Stamp Duty.
NSDL and CDSL are the two depositories which helps in transferring unlisted shares from one client to other via demat mode. One can use below mentioned CDSL calculator to calculate the total Stamp duty to be paid by seller. Remember, it does not matter whether you transfer unlisted shares via NSDL to CDSL, the stamp duty remains same.
How is unlisted share stamp duty is calculated?
Go to > https://www.cdslindia.com/StampDuty/Cal_StampDuty.aspx
Suppose, you are selling 100 unlisted shares of CSK at Rs. 150 per share. So, consideration amount would be 15000.
5. Click on “Calculate” to know the stamp duty client needs to pay.
Stamp duty calculated in the above step will be paid via Net Banking in
case of CDSL.
Now question is, what is CDSL’s beneficiary account which I need to add in the net-banking.
How will you add beneficiary in Net-banking?
Name = Central Depository Services (India) Limited
Account Number = XXXXXXXXXXX
Bank Name = ICICI Bank
Branch = Nariman Point, Mumbai
IFSC Code = ICIC0000104
In the above process, only Account number is not yet known.
What is Account Number?
The account number that you will add will be created depending upon type of users.
Type of User
CDSL Account Number
CDSD followed by the sixteen digit BO ID Transactions (i.e. Demat Account)
CDSDDP followed by the last five digits of your eight digit DP ID
CDSDIS followed by the Issuer ID if Issuer ID is less than five digits than mention the same
CDSDAMC followed by the AMC ID if Issuer ID is lessthan five digits than mention the same
For normal user, the first option can be used to know the bank account.
Suppose you are transferring unlisted shares by CDSL easiest method or via offline DIS Slip than type of user would be BO-Beneficiary Owner.
Once you add the above beneficiary, it will take somewhere between 30 minutes to 4 hrs depending upon bank to add this beneficiary.
Once the beneficiary is added, simply by using NEFT/RTGS/IMPS one can pay the required stamp duty.
Cheque, Demand draft and Pay orders will not be accepted for stamp duty account.
In case of NSDL, just click the below link.
1. Select Type of Security 2. Quantity
5. Stay Duty and Estimated Stamp duty will be calculated automatically. Click on “Pay Stamp Duty”
You will be redirected to another window,
1. Fill your DP Name
2. Client ID
3. Mobile Number registered with Demat 4. Email ID
5. Fill Stamp Duty to pay
Then click on “Make Payment”. After that you can pay by Net-Baking or UPI directly without adding beneficiary as in case of CDSL.