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Is it legal to buy unlisted shares in India?
Yes — buying and selling unlisted shares is entirely legal in India. This is the single most common hesitation among first-time investors, and the answer is clear.
The short answer: Unlisted share transactions are governed by the Companies Act 2013 and settled via your NSDL or CDSL depository participant — the same regulated infrastructure that governs all listed share transfers in India.
Legal basis under Companies Act 2013
Section 44 of the Companies Act 2013 recognises shares of private and unlisted companies as movable property that can be freely transferred between parties. There is no restriction on an individual buying or selling equity shares of an unlisted company through an OTC transaction, provided the company's articles of association do not contain transfer restrictions.
SEBI's position on OTC unlisted share transactions
SEBI does not regulate secondary OTC transactions in unlisted shares. SEBI's mandate covers listed securities and recognised stock exchanges. However, SEBI has issued guidelines around disclosure and investor protection for platforms facilitating such transactions — which Precize fully complies with.
How demat transfers make it compliant
When you buy unlisted shares on Precize, the transfer happens through an off-market transfer via the CDSL or NSDL depository system — the same demat infrastructure used for all listed securities. This creates a verifiable, auditable record of ownership transfer, making the transaction fully traceable and compliant.
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What you need before you start
Before placing your first order on Precize, make sure you have the following four items in place. The entire setup takes under 15 minutes if you already have a demat account.
PAN card
Your PAN is required for all investment transactions in India. The process takes under 2 minutes and is fully digital. No physical documents needed.
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Step-by-step: how to buy unlisted shares on Precize
The entire process — from registration to shares in your demat — takes under 10 minutes for a returning user with an active demat account. Here's exactly what happens at each step.
- 1
Register and complete KYC on Precize
~5 minutesCreate your Precize account with your mobile number and email. Then complete KYC using your PAN — the e-KYC process is fully digital and takes under 5 minutes. You'll need to upload a photo of your PAN card. Your demat account number is linked at this stage.
PAN requiredDemat linking
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How unlisted share prices are determined
Unlike listed stocks, there is no single central order book for unlisted OTC trades. Indicative prices reflect how sellers quote, how Precize aggregates those quotes, how tight the bid–ask spread is, and how recent history compares — use the ideas below before you commit to a lot.
Supply & demand
OTC market dynamics
Sellers set asking prices based on their cost of acquisition, recent funding rounds, and expected IPO valuation. Buyers negotiate or accept the ask. Platforms like Precize aggregate these quotes to show an indicative market price.
Price aggregation
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Understanding lot sizes and minimum investment
Unlisted shares on Precize trade in lots — a minimum number of shares per transaction. This is different from listed markets where you can buy a single share. Here's what you need to know before placing an order.
What is a lot?
A lot is the minimum unit of purchase for a given company's unlisted shares. Lot sizes are set based on the company's share price and typical transaction size in the OTC market. Higher-priced shares tend to have smaller lot sizes to keep the minimum investment accessible.
Minimum lot sizes for popular companies
Company
Minimum lot size
Approx. min. investment
IPO status
Lot size rationale
NSE
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How shares are transferred to your demat account
Post-purchase anxiety is the most common concern for first-time unlisted share investors. Here is exactly what happens after you pay — and how to verify your shares have arrived.
The IPO journey for pre-IPO shareholders
- Immediately after payment
Payment confirmation + order lock-in
You receive an email and SMS confirming your payment and order. Your order is now locked — Precize begins the transfer process with its verified seller network.
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Top unlisted shares to consider in 2026
A curated selection of the most actively traded unlisted companies on Precize — each with current price, IPO timeline, and a link to the full company page with analyst report.
National Stock Exchange (NSE)
Financial Services
India's largest stock exchange. Implied market cap ~₹5.8L Cr. SEBI approval still pending.
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