FAQs UnlistedKraft

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Unlisted Shares

A:Unlisted shares are the shares of companies that are not listed on any stock exchange. They are traded over-the-counter (OTC) directly between buyers and sellers, often through brokers or specialised platforms like UnlistedKraft.

A:You can buy unlisted shares through UnlistedKraft by following these steps:
Register: Create an account on our platform.
Browse Listings: Explore the available unlisted shares.
Place an Order: Submit a request to purchase the desired shares through our user-friendly interface.
Payment: Complete the payment process to finalise your purchase.
Once your payment is confirmed, the shares will be transferred to your demat account within T+5 days

A:To sell unlisted shares via UnlistedKraft:
Log In: Access your account on our platform.
Select Shares: Choose the shares you wish to sell from your portfolio.
Set Price: Specify your selling price or choose to sell at market price.
Confirm Sale: Submit your request, and we will connect you with potential buyers.
Once a buyer is found, the shares will be transferred to their demat account within 24 hours.

A:Yes, buying and selling unlisted shares is legal in India. This activity is regulated by the Securities and Exchange Board of India (SEBI). However, it is essential to ensure compliance with all applicable regulations when engaging in such transactions.

A:Investing in unlisted shares carries certain risks, including:
Liquidity Risk: Unlisted shares may be less liquid than listed ones, making it harder to sell them quickly.
Market Risk: Prices can be volatile due to limited trading activity.
Lack of Information: There may be less publicly available information about unlisted companies compared to listed ones.

A:UnlistedKraft prioritises security by implementing robust measures such as:
Secure payment gateways for transactions.
Compliance with regulatory standards.
A dedicated support team to assist with any concerns or queries.

A:UnlistedKraft charges a nominal stamp duty (0.015%) for facilitating transactions, which will be clearly outlined during the buying process.

A:Yes, UnlistedKraft provides a dashboard where you can monitor your investments, view transaction history, and track the performance of your unlisted shares in real-time.

A:If a company goes public (i.e., lists its shares on a stock exchange), you may be subject to a lock-in period as per SEBI regulations. Typically, this lock-in period lasts for six months from the date of listing before you can sell those shares on the exchange.

A:For any inquiries or support, you can reach out to our customer service team via email at amit@unlistedkraft.in or call us at +91-9599071664. Our team is available to assist you with any questions regarding buying or selling unlisted shares.

A:There are no hidden fees or additional platform charges on UnlistedKraft. The only applicable cost is the stamp duty of 0.015%.

A:Every seller listed on UnlistedKraft undergoes a strict KYC verification process to confirm identity and ownership. This ensures that all trades involve genuine and verified shareholders.

A:Since these are unlisted shares, liquidity may vary depending on market demand. Once a transaction is confirmed, share transfers are typically completed within T+5 working days.

A:Prices of unlisted shares are market-driven, based on demand, supply, and recent transactions. Prices fluctuate according to market sentiment and investor interest.

A:UnlistedKraft acts solely as a facilitating platform for buying and selling unlisted shares. We do not share company documents or financials. The shares are directly transferred from the verified seller to the buyer's demat account, ensuring a transparent and secure process.

A:Each investor is assigned a dedicated customer support manager to assist throughout the transaction process. We aim for instant resolution and ensure all queries are addressed within 24 business hours.

A:The shares remain unlisted equity holdings in the investor's name/Demat account, and can still be transferred or sold in the private/unlisted market, subject to buyer availability.

A:Unlisted shares are not traded on a recognised stock exchange (NSE/BSE) and are transacted through private/off-market deals, unlike listed shares which trade on exchanges with real-time pricing.

A:Yes, unlisted shares are held in dematerialised (Demat) form and can be transferred via off-market transactions using a Client Master Report (CMR)/DIS.

A:Upon a successful IPO and listing, existing unlisted shares get listed on the stock exchange (subject to lock-in provisions under SEBI ICDR Regulations, where applicable) and become tradable like any listed equity share.

A:Minimum investment amounts vary by company, platform, and seller, and are typically determined by the per-share price and minimum lot size set at the time of the transaction.

A:Unlisted shares provide access to companies before their public listing, along with associated risks such as lower liquidity, valuation uncertainty, and longer holding periods.

A.23:Yes, unlisted shares are transferred and held in dematerialised (Demat) form through NSDL/CDSL-registered depositories.

A:Dematerialisation applies to shares of both listed and unlisted companies registered with depositories (NSDL/CDSL); listing on an exchange is a separate, additional process.

A:Holding periods for unlisted/growth-stage shares are typically medium to long term, as liquidity depends on the company's IPO timeline or private market demand.

A:The minimum investment amount is set by the specific transaction/seller and varies by company and per-share pricing at the time.

A:Lock-in periods vary by source (e.g., ESOP shares, pre-IPO placements) and are governed by company policy or, post-listing, by SEBI ICDR Regulations where applicable.

A:Returns are not fixed or guaranteed and depend on company performance, valuation changes, and market conditions at the time of exit.

A:Gains are taxed under Section 112 of the Income Tax Act: 12.5% LTCG (holding over 24 months, no indexation) or slab-rate STCG (holding under 24 months); no STT applies to off-market unlisted share transactions.

A:Selection criteria commonly include company financials, sector outlook, promoter background, valuation, and available public filings such as DRHP/RHP.

A:Due diligence typically covers financial statements, valuation benchmarking, promoter/management background, regulatory filings, and sector analysis.

A:Common categories include promoter shares, private equity/investor shares, strategic investor shares, pre-IPO shares, secondary market shares, warrants, and shares of family-owned/private businesses.

A:Unlisted shares in India are purchased through SEBI-registered intermediaries or dedicated unlisted share platforms via off-market Demat-to-Demat transfer.

A:Shares of family-owned unlisted businesses are typically acquired through direct negotiation with existing shareholders, subject to any restrictions in the company's Articles of Association.

A:Startup/small business unlisted shares are acquired through private placements, ESOP transfers, or registered unlisted share platforms via off-market Demat transfer.

A:Yes, unlisted shares purchased are reflected in the investor's Demat account statement issued by the depository (NSDL/CDSL).

A:Commonly cited characteristics include early access to companies before listing and potential participation in the company's IPO/listing event; actual outcomes vary by company and market conditions.

A:Yes, risks include low liquidity, valuation uncertainty, limited public disclosure, longer holding periods, and no guarantee of eventual listing or exit.

A:Information is available through registered unlisted share platforms, company filings (where available), and SEBI/exchange disclosures for companies that have filed for IPO.

A:Unlisted share transactions in India are typically conducted as private off-market deals and are not restricted to SEBI-defined "accredited investors," unlike certain regulated alternative investment products.

A:Valuation factors commonly include the company's financial performance, comparable listed peer multiples, revenue growth, sector trends, and any recent funding round valuation.

A:Unlisted shares carry both potential upside and specific risks such as illiquidity and valuation uncertainty; suitability depends on individual financial goals and risk tolerance.

A:Relevant documents include the company's financial statements, shareholding pattern, MOA/AOA, any DRHP/RHP filings, and the share transfer/sale agreement.

A:Buyers include individual investors, family offices, HNIs, and institutional investors, purchasing through registered platforms or direct off-market transactions.

A:Unlisted shares have never been listed on a stock exchange, while delisted shares were previously listed and later removed from exchange trading.

A:Unlisted shares in India can be purchased through SEBI-registered intermediaries and dedicated unlisted share platforms via off-market transfer.

A:The unlisted/private share market refers to the space where shares of companies not listed on a stock exchange are bought and sold through off-market, negotiated transactions.

A:Transaction assurance typically involves verified Demat transfer records, signed transfer/sale agreements, and transactions routed through SEBI-registered intermediaries.

A:Not typically; unlisted share sales are usually between existing shareholders (employees, promoters, investors) and buyers, rather than direct sales by the company itself, except in private placement rounds.

A:Sellers are typically existing shareholders such as employees (via ESOP), early investors, promoters, or private equity holders looking to exit.

A:Promoter shares are equity holdings held by a company's founders/promoters, subject to specific disclosure and lock-in norms under SEBI regulations.

A:Such shares are acquired through private/off-market transactions with existing PE investors or via registered unlisted share platforms, involving Demat transfer and applicable agreements.

A:Warrants of unlisted companies are acquired through private placement or transfer agreements, and convert to equity shares as per the terms specified at issuance.

A:Secondary (unlisted) market shares are bought from existing shareholders via off-market transactions facilitated by registered intermediaries or platforms.

Pre-IPO Shares

A:Pre-IPO shares are equity shares of a company that has not yet listed on a stock exchange (NSE/BSE), typically acquired through employees, promoters, or private placements before the company's Initial Public Offering.

A:Pre-IPO shares offer entry at pre-listing valuations and potential liquidity once the company lists, but returns depend on market conditions, listing performance, and company fundamentals - outcomes are not guaranteed.

A:Evaluation typically involves reviewing the company's financials, DRHP/RHP filings (if filed), promoter holding, sector growth, and valuation multiples compared to listed peers.

A:Long-term capital gains (holding period over 24 months) on unlisted shares are taxed at 12.5% without indexation under Section 112; short-term gains (under 24 months) are taxed at the investor's applicable income tax slab rate.

A:Yes, pre-IPO shares can be sold in the private/unlisted share market before the company lists, subject to buyer availability, applicable transfer restrictions, and Right of First Refusal (ROFR) clauses if any.

A:Pre-IPO shares can be purchased through SEBI-registered intermediaries and dedicated unlisted share platforms; investors should verify registration and transaction transparency before transacting.

A:Trading in pre-IPO companies provides exposure to growth-stage businesses before public listing, with returns linked to company performance and market demand at the time of exit.

A:No, profit is not guaranteed; unlisted share investments carry market, liquidity, and valuation risks, and returns depend on the company's performance and IPO/exit outcome.

A:Pre-IPO shares are purchased via registered intermediaries or private sellers through off-market Demat transfer before the company's listing.

Delisting Shares

A:Delisting means a company's shares are removed from the stock exchange, after which shareholders can no longer trade the shares on the exchange platform.

A:Delisted shares carry lower liquidity and no exchange-based trading, and their value depends on the company's fundamentals and any exit/buyback offer available.

A:Shareholders retain ownership of their shares even if they don't participate in the delisting offer, but the shares become illiquid as they can no longer be traded on the stock exchange.

A:A promoter's share refers to the equity stake held by the individual(s) or entities classified as promoters of the company under SEBI/Companies Act definitions.

A:Strategic investor shares are purchased through negotiated off-market deals with the holder, subject to any transfer restrictions specified in shareholder agreements.

A:Shareholders of a delisted company retain their ownership rights and can participate in the exit/buyback offer made by the promoter/acquirer during the delisting process, as per SEBI Delisting Regulations.
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