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Unlisted shares can be in either Physical for or Demat form. Demat shares are easier and safer.

Only a Demat account (NSDL or CDSL) is required.

Short Term Capital Gains are taxed at the respective income slab rate of the assessee.

Long Term Capital Gains are taxed at 20% with indexation.

Holding period of the stock for treating Gain/Loss as long term is 24 months.

Last updated:30th July 2021

No, unless the company floats an IPO.
If the company goes for an IPO, their entire Pre-IPO capital is locked in for a period of 1 year in accordance with SEBI’s Investor Protection guidelines.

SEBI (Disclosure and Investor Protection) {DIP} Guidelines, 2000 and its amendments from time to time require that the entire Pre-IPO Capital* will be locked-in for a period of 1 year from the IPO.

*Except shares held by SEBI registered VC Funds and FVCI held for more than 1 year.

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