The lock-in period for NSE India Limited Unlisted Shares varies depending on the category of investors:

1. 1. For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of NSE India Limited Unlisted Shares.
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   2. For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period.
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   3. For other types of investors, which include Retail Investors, High Net-worth Individuals (HNIs), or Body Corporates, the lock-in period is 6 months from the date of the IPO listing of NSE India Limited Unlisted Shares.

This regulation was introduced by SEBI in August 2021. The rule change, which reduced the lock-in period from one year to six months, was aimed at encouraging more investments in startups that are preparing for public offerings or IPOs. This reduction in the lock-in period is seen as a significant step forward, and since its introduction, many Portfolio Management Services (PMS) have been advising their clients to invest in Pre-IPO shares to capitalize on the benefits of early-stage investments.

However, for SME IPOs, the lock-in period is of One year.

Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:

• 1. Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%. However, it has now changed in Budget 2024 from 23rd July 2024 to 12.5%.
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  2. Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain. However, This has removed in the Budget 2024 from 23rd July 2024.
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  3. Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
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  4. Calculation: New LTCG will be calculated from 23rd July 2024 as flat rate of 12.5%.
  
  
• 5. Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
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  6. Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.

Buying NSE Unlisted Shares is a two-stage process.

In the first stage, you need to provide KYC documents for name approval from the NSE board. This includes a CML copy, PAN card, Aadhar card, and a cancelled cheque. Various Annexures and an SPA are then prepared and submitted to NSE for clearance.

The second stage involves obtaining a verification letter from your broker and using DIS slips to transfer shares. The entire process can take up to three months.

The entire process can take up to three months, divided into two stages. The first stage can take 1 to 1.5 months, and the second stage takes about another month.

In addition to the price of the shares, you will need to pay for stamp papers, which cost INR 5000 for each of the several Annexures required in the process and document preparation charges of INR 5000 to be given to the consultant who will help us in preparing NSE Unlisted Shares document.

You need to submit your Client Master List (CML) copy, PAN card, Aadhar card, and a cancelled cheque for KYC purposes.

The process of buying of NSE Unlisted Shares is quite structured and involves specific stages that take a fixed amount of time. However, ensuring that all documents are submitted correctly and without errors can help avoid delays.

If you encounter any problems during the transfer of NSE Pre-IPO shares, UnlistedZone offers assistance in completing the transfer of shares.

Yes, in the second stage of the process, you will require a verification letter from your broker authenticating your DP IDs and your signature.

The 'ISIN Suspended' status for NSE shares in your DP account is due to the unique process involved in the transferability of these shares. The International Securities Identification Number (ISIN) for NSE shares is not permanently active due to their unlisted nature and the strict regulatory controls governing them.

Here's how the process works:

1. Board Approval: Transfer of NSE shares requires prior approval from the NSE board. This is a special condition imposed on these shares to monitor and regulate their transfer.

2. Temporary ISIN Activation: Once the board approves a transfer, the ISIN for these shares is temporarily activated. This is solely to facilitate the transfer process from the seller to the buyer.

3. Share Transfer and ISIN Suspension: After the shares are transferred to the buyer's account within the active ISIN window, the ISIN is immediately suspended again. This suspension is a control measure to prevent further trading or unauthorized transfer of these shares until another approval is obtained for a subsequent transfer.

This mechanism ensures that all transfers of NSE shares are conducted under strict regulatory oversight, aligning with the guidelines for unlisted shares. The periodic suspension and activation of the ISIN are part of this regulatory framework.

The price of NSE Unlisted Shares is determined by the market demand and supply, and it may also be influenced by the company’s financial performance, market sentiment, and potential future growth. As these shares are not traded on a public exchange, pricing information may not be as readily available as for listed shares.

Investing in NSE Unlisted Shares involves risks like limited liquidity, regulatory changes, and the potential delay in share transfer due to the requirement of board approval. Investors should also consider the market conditions and the company's financial performance before investing.