Selling Unlisted shares can be a great way to unlock the value of your investments. Unlike listed shares, which can be sold on stock exchanges instantly, Unlisted shares require different strategies and platforms for liquidity. If you own Unlisted shares and want to sell them, this guide will help you understand the process.
What Are Unlisted Shares?
Unlisted shares are stocks of companies that are not listed on recognized stock exchanges like NSE or BSE. These shares are usually traded privately through brokers, investment platforms, or direct transfers between investors.
Why Sell Unlisted Shares?
- Profit Booking: If the company has gained value, selling shares can lock in profits.
- Liquidity Needs: Unlike listed stocks, Unlisted shares can be harder to sell, making it important to find the right buyers.
- Portfolio Rebalancing: Investors may want to reduce exposure to Unlisted shares and reinvest in other asset classes.
Where to Sell Unlisted Shares?
There are multiple ways to sell Unlisted shares in India. Here are some of the most effective methods:
1. Online Investment Platforms
Several online platforms, such as InCred Money, UnlistedZone, Planify, and Sharescart, facilitate buying and selling of Unlisted shares. These platforms connect sellers with potential buyers and handle the transaction process securely.
2. Through Brokers & Dealers
Many brokers and intermediaries specialize in dealing with Unlisted shares. They help sellers find buyers, negotiate prices, and ensure smooth transactions. It’s essential to work with trusted brokers to avoid fraud.
3. Direct Sale to Investors
If you have contacts in the investment community, you can sell Unlisted shares directly to interested buyers, such as angel investors or private equity firms. Negotiating directly can sometimes yield better prices.
4. Employee Stock Ownership Plan (ESOP) Sales
Employees holding Unlisted shares through ESOPs often sell them to investors via private deals or on platforms specializing in such transactions.
5. Private Placement Sales
Large stakeholders, such as company promoters or venture capitalists, may buy back Unlisted shares through negotiated private placements. These deals usually occur at premium valuations.
Key Factors to Consider Before Selling
Before selling Unlisted shares, consider the following:
- Company Valuation: Selling at the right valuation is crucial. Research market trends and demand before deciding on a price.
- Liquidity & Demand: Some unlisted stocks have higher demand than others. Finding the right buyer might take time.
- Transaction Costs: Brokers and platforms may charge a commission for facilitating the sale.
- Tax Implications: Selling Unlisted shares attracts capital gains tax, which varies based on the holding period.
Tax Implications of Selling Unlisted Shares
- Short-term Capital Gains Tax (STCG): If held for less than 24 months, gains are taxed as per your income tax slab.
- Long-term Capital Gains Tax (LTCG): If held for more than 24 months, gains are taxed at 12.5% without indexation.
Conclusion
Selling Unlisted shares requires planning and choosing the right platform or buyer. Whether you sell through brokers, online platforms, or private investors, ensuring transparency and fair valuation is key.
Explore Selling Opportunities with InCred Money
If you’re looking for a seamless and secure way to buy or sell Unlisted shares, check out InCred Money for expert guidance and a trusted marketplace.
