Unlisted shares are shares of companies that are not listed on recognised stock exchanges such as the National Stock Exchange (NSE) or BSE. These shares may be held by promoters, employees, early investors or other shareholders and may be transacted through private arrangements or permitted over-the-counter mechanisms, subject to applicable laws and regulations.

Transactions in unlisted shares differ from those in listed shares in terms of liquidity, price discovery and the availability of publicly accessible information. Their valuation may depend on factors such as the company’s financial performance, business prospects, capital structure and demand among buyers and sellers. Prices quoted by different market participants may vary, and completing a transaction may take time.

Investing in unlisted shares involves risks, including limited liquidity, valuation uncertainty, limited availability of information and the possibility of capital loss. There may be restrictions on the transfer of shares, and an investor may not be able to sell them when desired. Before entering into a transaction, investors should review the company’s available financial information, applicable transfer conditions, transaction documentation and relevant regulatory requirements.