Unlisted Shares include equity shares of a company that are not listed or traded on any recognized or regulated stock exchanges like BSE/NSE. These unlisted shares are traded over the counter (OTC), and they are often called over-the-counter shares or OTC securities. These companies can be companies that are privately held, formerly public companies taken private in management buyouts, or public companies which are not yet listed on a recognised stock exchange.
These companies often enjoy a healthy growth rate and have industry-leading future prospects. These unlisted shares, especially at the pre-IPO stage, provide an excellent investment opportunity mainly focusing on long-term wealth creation. The returns of unlisted shares can potentially beat returns by listed equities.
There is a reduction of surcharge on Unlisted Shares from 28.5% to 23%.
Yes! This move will ease exits from the unicorns and startups and will allow easy exit and better churn to the investors.
There could be no better time to invest and grab unbelievable returns through unlisted equity.