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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.
Active demat account (HDFC Securities, Zerodha, Groww )
You need an active demat account with either NSDL or CDSL to receive unlisted shares. If you already invest in listed stocks, you have one. If not, open a demat account with brokers like Zerodha, Groww or Angle One, takes 24 - 48 hours.
Bank account linked to PAN
Payments on Precize are made via UPI (instant) or Net Banking (same day). Your bank account must be linked to your PAN for the transaction to be compliant. Most major Indian banks are supported.
Minimum investment — typical lot sizes on Precize
Precize's minimum investment starts at ₹10,000. However, most high-demand companies trade in minimum lots of 50–200 shares — at indicative prices, this means ₹50,000 – ₹2,00,000 for companies like NSE or Zepto. Check the specific company page for current lot size requirements before investing.
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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 - 2
Browse the unlisted share catalog
~3 minutesExplore Precize's catalog of 150+ unlisted companies. Filter by sector (fintech, quick commerce, infrastructure), stage (pre-DRHP, DRHP filed, IPO expected), or price range. Each company page shows the current indicative price, a historical price chart, and our in-house analyst view. Use the Screener for more advanced filtering.
150+ companiesSector filtersAnalyst reports - 3
Review price, financials, and analyst view
~2 minutesBefore placing an order, review the company's current indicative price, historical price chart, revenue and profitability data, IPO timeline (if applicable), and the Precize analyst view. This is your due diligence step — treat it seriously. The analyst view flags both opportunities and risks specific to each company.
Price historyAnalyst viewIPO timeline - 4
Choose your quantity and place the order
~1 minuteSelect the number of lots you want to purchase. Precize will show your total investment amount including applicable stamp duty (0.015% of transaction value). Review the order summary — company name, price per share, number of shares, and total purchase price — then confirm. Your order is now placed.
Lot-based orderingStamp duty shownOrder summary - 5
Transfer funds via UPI or Net Banking
~1 minutePay the total purchase price via UPI (instant) or Net Banking (same business day). Funds are secured immediately upon payment — your order is locked in. You will receive a payment confirmation and order acknowledgement via email and SMS. The payment must come from a bank account linked to your PAN.
UPI / Net BankingFunds secured instantly - 6
Receive shares in your demat account
24 - 48 hoursWithin 24–48 business hours of payment, shares are transferred directly to your demat account via an off-market transfer. You will receive an SMS from CDSL/NSDL confirming the credit. You can verify the receipt in your demat statement on your depository participant's app. That's it — you now own unlisted shares.
Off-market transferCDSL / NSDL SMS24 - 48 hrs
Total time: Under 10 minutes to complete your purchase + 24 - 48 hours for demat transfer.
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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
How Precize sources prices
Precize sources prices from multiple verified sellers in its network and displays a weighted indicative price. This is more reliable than a single seller quote and gives you a market-level view — not just one party's ask.
Bid-ask spread
Evaluating a fair price
The spread between the highest bid and lowest ask reflects market liquidity. A tight spread (under 2%) means the market is active. A wide spread signals lower liquidity — factor this into your investment decision.
Price reference
Historical chart as anchor
Every Precize company page shows a 12-month price history. Use this to contextualise the current ask — is it near a recent high? Has it corrected? Price history is your best anchor in the absence of a live exchange price.
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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
6 shares
₹10,000
PRE - IPO
Smaller lot for accessibility
Zepto
186 shares
₹10,000
DRHP Filed
Balanced lot size
Metropolitan Stock Exchange of India
1527 shares
₹10,000
Unlisted
Larger lot due to lower value
OYO
409 shares
₹10,000
PRE - IPO
Standard OTC sizing
Prices are indicative and subject to change. Check each company's Precize page for current lot sizes and live indicative prices.
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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.
- Within 4 - 8 business hours
Off-market transfer initiated
Precize initiates an off-market transfer instruction via CDSL or NSDL. This is a standard depository transaction — identical in process to a listed share transfer, just without an exchange as intermediary.
- CDSL vs NSDL - does it matter?
Both depositories work seamlessly
It does not matter whether you use CDSL or NSDL. Precize supports both. The transfer process is identical. If your demat is with Zerodha or Groww, it's CDSL. HDFC Securities uses CDSL too. NSDL is used by some bank-based brokers like ICICI Direct.
- Within 24 - 48 business hours
Shares credited to your demat
You receive an SMS from CDSL or NSDL confirming that the shares have been credited to your demat account. This is the definitive confirmation of ownership.
- How to verify receipt
Check your demat statement
Log into your demat account (Zerodha, HDFC Securities, etc.) and check your holdings. The unlisted shares will appear there. Alternatively, log into the CDSL or NSDL portal directly using your demat credentials to view your consolidated statement.
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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)
Stock Exchange
India's largest stock exchange. Implied market cap ~₹5.8L Cr. SEBI approval still pending.
Zepto
Ecommerce
10-minute grocery delivery. DRHP filed December 2025; IPO expected H1 2026.
Metropolitan Stock Exchange of India
Stock Exchange
Emerging stock exchange. Unlisted trading active. No IPO filing or timeline yet.
Oravel Stays (OYO Rooms)
Hospitality
Global hospitality platform. DRHP withdrawn. IPO plans ongoing with re-filing expected.
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