How to Buy Unlisted Shares in India: Step-by-Step Process?

Ever wondered what it’s like to invest in a company before it goes public? If yes, unlisted shares can be your path to early wealth creation. Over the past few years, several stocks such as Reliance Retail, Tata Technologies and HDFC Securities have been widely traded in the unlisted space — attracting investments. But what exactly does it take to buy unlisted shares in India?

In this CoinDCX News guide, we’ll gradually explain how to buy unlisted share in India, the potential risks and rewards associated with it, and some things to consider before you enter this under-the-radar market.

What Are Unlisted Shares?

Unlisted Shares are shares of companies that are not listed on any stock exchange such as NSE or BSE. These could be start-ups, pre-IPO companies or even the local divisions of major companies. Although not publicly traded, their shares are exchanged on over-the-counter (OTC) markets, by brokers or at specialized unlisted share venues.

Why Invest in Unlisted Shares?

Friends, We will get the ease of how-to-buy unlisted share in India, but first, answer should know why investors are seeing them:

• Early access to high-growth companies
• Better payoff if the company goes public down the road
• Portfolio diversification beyond listed equities
• ESOPs are made tradable.

But these advantages are not without risk, including diminished liquidity, price transparency, and longer term objectively.

Step-by-Step Process: How to Buy Unlisted Share in India

Let’s break down the entire process in simple, actionable steps for you.

Step 1: Do Your Research

The first step in knowing how to buy unlisted share in India is conducting thorough due diligence:

• Company’s financial health
  
• Management background
  
• Industry trends
  
• Potential IPO plans
  
• Past performance (if available)
  

Use websites, whitepapers, annual reports, and even insights from platforms like CoinDCX News to gather credible information.

Step 2: Find a Trusted Platform or Dealer

Unlisted shares aren’t traded on regular exchanges, so you need to find reliable intermediaries:

• Unlisted share brokers
  
• Wealth management firms
  
• Online platforms (like UnlistedZone, Sharescart, or Planify)
  
• Employee stockholders selling ESOPs
  

Make sure the dealer is SEBI-compliant and offers genuine ownership proof post-transaction.

Step 3: KYC & Account Setup

Once you’ve chosen your broker/platform, complete the KYC process:

• PAN Card
  
• Aadhaar Card
  
• Bank proof (cheque or passbook)
  
• Demat account details
  

Most platforms require you to link your Demat account (like Zerodha, Angel One, or Upstox) for share settlement.

Step 4: Place Your Order

Discuss the current price and place your buy order. Unlisted shares are often negotiated based on:

• Market demand
  
• Company valuation
  
• Quantity purchased
  

Be aware that prices vary across platforms, so do a comparison before finalizing.

Step 5: Make Payment

Payments are generally made through:

• NEFT/RTGS
  
• UPI for smaller transactions
  
• Cheque or online transfer
  

Always make the payment to the authorized account provided by the broker. Avoid cash or unverified UPI IDs.

Step 6: Share Transfer & Allotment

Post-payment, you will receive an instruction slip confirming the transfer of shares to your Demat account. The shares typically show up in:

• T+3 to T+7 days
  
• Under “Other than market transfers” section in your Demat
  

Always ask for a Contract Note or Acknowledgment Receipt.

Step 7: Monitor and Exit

Now that you’ve learned how to buy unlisted share in India, it’s time to:

• Track company performance
  
• Stay updated via CoinDCX News
  
• Plan your exit strategy (pre-IPO, buyback, or sale on the grey market)
  

Risks to Consider When Buying Unlisted Shares

Just like any investment, buying unlisted shares also has its downsides:

Risk	Details
Low Liquidity	Difficult to sell when needed
Lack of Transparency	Limited financial disclosures
Price Manipulation	No standard pricing mechanism
Regulatory Changes	SEBI or RBI changes may impact your holdings
No Guarantee of IPO	Company may never go public

That said, investing in unlisted shares can be highly rewarding when done carefully and with reliable insights from sources like CoinDCX News.

Pro Tips for Investors

Here are some bonus tips from CoinDCX News to help you make smart decisions:

• Start Small: Test the waters before making a big bet.
  
• Avoid Hype: Just because a company is famous doesn’t mean it’s a good investment.
  
• Diversify: Don’t invest all your capital in one unlisted company.
  
• Check Lock-in Periods: Some companies have restrictions post-listing.
  
• Track SEBI Announcements: Regulatory updates can affect your investment.

Popular Unlisted Shares in India (2025)

If you’re just getting started, here are some of the top-traded unlisted shares that attract investor attention:

• Tata Technologies
  
• Reliance Retail
  
• HDFC Securities
  
• Studds Accessories
  
• Chennai Super Kings (CSK)
  
• Hexaware Technologies
  
• Hero FinCorp
  
• NSE (National Stock Exchange)
  

These are subject to market changes, so always cross-check the latest updates via CoinDCX News.

Real-Life Example: Investing in Tata Technologies (Pre-IPO)

Let’s understand with real example: Case 1: A retail investor bought unlisted Tata Technologies shares in February 2023 at ₹400 each. It was listed at about ₹950/share in 2024.

ROI? Over 130% in a year.

That’s the magic of knowing how and when to buy unlisted share in India!

Final Thoughts

Learning how to buy unlisted share in India will allow you to expand your investment prospects, before the rest of the market catches on. There are risks associated with it, but with some proper strategy, partner platforms and news backing from CoinDCX News, you can also make calculated investments.

Early access = Early profits.

Are you ready to now experience the world beyond the stock exchange?

FAQs on How to Buy Unlisted Share in India