Different Ways to Buy Unlisted Shares in India | Investor Guide

Key Takeaways

●     Investors now have multiple options for buying unlisted shares in India beyond traditional networks.

●     Understanding where to buy unlisted shares in India matters more than timing the entry price.

●     Platforms, intermediaries, and fund-based routes each suit different investor profiles.

●     Unlisted shares require patience, documentation clarity, and clear exit planning.

Introduction

The Indian private market has been quietly gaining momentum. While listed stocks dominate headlines, a growing segment of investors is now looking at unlisted shares as a way to participate in company growth before it reaches public markets.

The idea is simple. Some of India’s most valuable companies spent years as private entities. Early investors who understood the unlisted shares market were able to enter before valuations expanded. Today, with better access and information, more investors want to buy unlisted shares as part of a long-term portfolio strategy.

However, unlisted shares are very different from listed stocks. There is no exchange screen, no daily price discovery, and no instant liquidity. This guide explains where to buy unlisted shares in India, how transactions actually work, and what investors should realistically expect.

Understanding Unlisted Shares in India

Unlisted shares are equity shares of companies that are not listed on stock exchanges like NSE or BSE. These companies may be early-stage startups, mature private firms, or pre IPO shares preparing for a public listing.

In India, unlisted shares are traded privately through negotiated transactions. Prices are not regulated by an exchange and can vary depending on demand, company performance, and future expectations.

Because of this structure, unlisted shares in India operate on trust, documentation, and due diligence rather than speed.

How the Unlisted Shares Market Works

The unlisted shares market does not function like the stock market. There is no order book and no live pricing.

Every transaction is negotiated. Two investors may buy the same unlisted share at different prices in the same month. This is normal. What matters more is business quality and exit visibility.

This is why investors should focus on where to buy unlisted shares in India safely rather than trying to time short-term price movements.

Different Ways to Buy Unlisted Shares in India

There is no single “best” method. Each route suits a different type of investor.

1. Buying Through Unlisted Share Platforms and Intermediaries

Many investors today use specialised platforms or intermediaries to buy unlisted shares. These entities source shares from employees, early investors, or promoters and help complete the transaction through Demat transfers.

For convenience and structure, this route is often considered the best platform to buy unlisted shares in India, especially for first-time investors.

Some platforms also operate through mobile interfaces, leading investors to search for the best app to buy unlisted shares in India. While technology helps, credibility and compliance matter far more than design or ease of use.

2. Buying ESOP Shares from Employees

Employees of private companies often receive ESOPs and may want liquidity before an IPO. Investors can buy unlisted shares directly from such employees.

These deals involve negotiated pricing, company approvals, and Demat transfers. The process takes time, but can offer early access to pre IPO shares.

This route suits patient investors who are comfortable with documentation and waiting periods.

3. Buying Shares from Promoters or Early Investors

Occasionally, promoters or early investors sell a portion of their holdings. These deals are usually larger and involve stricter checks.

Retail investors typically access such opportunities through trusted networks or intermediaries. Pricing here is often based on long-term conviction rather than short-term demand.

4. Investing via PMS, AIFs, or Private Funds

For investors who prefer professional management, PMS and AIF structures provide exposure to unlisted shares as part of a diversified portfolio.

These funds handle due diligence, compliance, and exit planning. While minimum investments are higher, operational complexity is lower.

This route is suitable for investors who want exposure to the unlisted shares market without direct transaction handling.

How to Buy Unlisted Shares Using Zerodha

A common query is how to buy unlisted shares on Zerodha. Zerodha does not offer a marketplace for unlisted shares.

However, once you buy unlisted shares through other routes, they can be held in a Zerodha-linked Demat account. Zerodha acts as a depository participant, not a seller.

Understanding this avoids confusion during the buying process.

Benefits of Investing in Unlisted Shares

Unlisted shares allow early participation in growing companies. Investors gain exposure before public listing and potential valuation expansion.

They also provide diversification. Unlisted shares do not move in sync with listed markets, which can help balance portfolio risk.

For long-term investors, successful pre IPO shares can generate meaningful returns over time.

Risks and Realities

Unlisted shares are not risk-free.

Liquidity is limited. Pricing is subjective. Exit timelines are uncertain. Regulatory and tax compliance must be handled carefully.

The unlisted shares market rewards patience, not urgency.

Selling Unlisted Shares and Exit Options

Investors can sell unlisted shares through private buyers, secondary platforms, or post IPO once shares are listed on the exchange.

Capital gains tax applies based on the holding period. Proper documentation and compliance are essential during exits.

FAQs

Where to buy unlisted shares in India safely?

Unlisted shares can be purchased through specialised platforms, intermediaries, ESOP transactions, or managed funds.

What is the best platform to buy unlisted shares in India?

There is no single best platform. Investors should focus on credibility, compliance, and documentation support rather than pricing alone.

Is there a best app to buy unlisted shares in India?

Some platforms offer apps, but due diligence matters more than the app itself.

How to buy unlisted shares that Zerodha users hold?

Zerodha users must buy unlisted shares elsewhere and then hold them in their Zerodha Demat account.

Are pre IPO shares risky?

Yes. Pre IPO shares offer upside but come with liquidity and valuation risks.

Disclaimer

This content is for informational purposes only and does not constitute investment advice. Investments in unlisted shares involve risks, including limited liquidity and valuation uncertainty. Investors should conduct independent research or consult a qualified financial advisor before making any investment decisions.