These include equity shares of a company that is not listed on BSE/NSE, these shares are traded over the counter (OTC), and they are often called OTC securities. These companies can be companies which are privately held, formerly public companies taken private in management buyouts, public companies which are not yet listed on a recognised stock exchange etc.
These companies often enjoy a healthy growth rate and have industry-leading future prospects. These unlisted shares, especially at pre-IPO stage, provide an excellent investment opportunity mainly focusing on long-term wealth creation. The returns 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.