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It is for promotion of investors awareness and protection of the interests of investors.

  • 1. Are unlisted shares in Physical form or Demat form?
    Ans: Unlisted shares can be in either Physical for or Demat form. Demat shares are easier and safer.

  • 2. Do I need a trading account and Demat Account to buy Unlisted Shares?
    Ans: Only a Demat account (NSDL or CDSL) is required.

  • 3. Is Securities Transaction Tax charged on transactions in Unlisted Shares?
    Ans: No.

  • 4. What is the capital gains tax treatment of investing in unlisted shares?
    Ans: Yes,Short Term Capital Gains are taxed at the respective income slab of the assesse.
    Short Term Capital Gains
    Long Term Capital Gains are taxed at 20% plus cess with Indexation.

  • 5. Is there any Locking period, if yes, for how long?
    Ans: No, unless the company floats an IPO.
    If the company goes for an IPO, there 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.

    Disclaimer: The contents of this page are not advice on investment or taxation. Please consult an investment and/or tax expert for advise on your specific Investment / Tax situation.