How to sell Unlisted Shares?

Unlisted shares pertain to shares of companies that have not undergone an initial public offering (IPO). Some companies raise capital by selling their shares through channels other than recognized stock exchanges like NSE or BSE, often utilizing the grey market. In the case of pre-IPO companies, shares are offered to investors before the company goes public, enabling them to raise funds.

While these unlisted shares share similarities with listed stocks, a key distinction lies in the trading venues. Listed stocks are traded on formal stock exchanges such as NSE or BSE, whereas unlisted shares are transacted in the unlisted market. Investors in unlisted shares typically aim to participate in the growth and success of the respective unlisted companies, aligning their investment strategy with the development of these companies outside the traditional stock exchange trading platforms.

There are many ways to buy these unlisted shares, but most investors aren't aware of this: “Can one sell these unlisted shares?” Definitely!

Through Precize, investors have the capability not only to purchase unlisted shares but also to engage in selling transactions if they seek an exit opportunity from the Grey Market.

While the process of purchasing unlisted shares is uniform for all investors and involves just three steps:

1. Selecting the desired unlisted company,

2. Adding funds, 

3. Placing an order

The process of selling or transferring these shares involves a unique procedure. In this scenario, unlisted shares transfer occurs through the investor's Depository Account, specifically the CDSL or NSDL Account.

The selling process with Precize is streamlined into a two-step procedure:

1. Transfer the shares. 

2. After receiving the shares within 24 to 48 business hours, Precize will facilitate a buyer for those unlisted shares at the Current Market Price.

The corresponding amount will then be credited to your Bank account that is registered with Precize. It's worth noting that Precize facilitates a buyer within 24 to 48 business hours after the transfer of shares at the Current Market Price, exclusively for shares acquired through Precize.

*Note: A facilitation fee of 2% will be applied on the total amount.

The transfer process can be conducted through either online or offline methods. The transfer occurs through a Depository Account, i.e., the CDSL and NSDL.

If CDSL Account(online method):

An investor can transfer their unlisted Shares via CDSL's Easiest Service.

Before signing up for Easiest, individuals need to first register for CDSL Easi. Then, they can proceed to the "Upgrade BOID to Easiest" option found under the "Miscellaneous" tab.

To know how to register for CDSL Easiest, See “How to register for CDSL Easiest?”

To know how to add a trusted BOID, see “How to add and delete trusted BOID ON CDSL Easiest?”

*Note: Payment of stamp duty is necessary beforehand to prevent rejection.

To know how to transfer shares via Easiest, See “How To Transfer Shares From Your Demat Account To Another CDSL Demat Account Using CDSL Easiest?”

If NSDL Account (offline method):

Investors can transfer their shares using a Delivery Instruction Slip (DIS) Booklet. 

This booklet can be obtained from their Demat Broker. For information on acquiring the DIS Booklet, please refer to "What is DIS Booklet and How to get it?"

In conclusion, unlisted shares offer investors a unique avenue for investment beyond traditional stock exchanges. With platforms like Precize, buying and selling these shares becomes more accessible, providing opportunities for diversification and participation in the growth of emerging companies. Understanding the processes involved in dealing with unlisted shares is crucial for navigating this distinctive segment of the financial market.