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5 Common Myths About Unlisted Shares – Busted!

When we talk about investing in the stock market, most people only think about shares listed on the NSE or BSE. But there’s another type of investment that’s gaining popularity—unlisted shares. These are shares of companies that are not listed on any stock exchange but are still available for buying and selling through private networks or brokers.

Unfortunately, many people are hesitant to invest in unlisted shares because of certain myths and misunderstandings. In this blog, we’ll bust 5 of the most common myths about unlisted shares.

Myth 1: Unlisted Shares Are Illegal

Truth:
 This is one of the biggest myths. Unlisted shares are completely legal to buy and sell in India. Many well-known companies like Ola, OYO, Reliance Retail, and PharmEasy have unlisted shares. These shares are usually traded through authorized brokers or private deals before the company gets listed on a stock exchange.

Myth 2: Only Big Investors Can Buy Unlisted Shares

Truth:
 While it’s true that institutional and HNI (High Net-worth Individuals) investors were the main buyers earlier, now retail investors can also invest in unlisted shares. There are many platforms and firms that allow small investors to participate. Some deals may have a minimum investment requirement, but it’s not only for the super-rich anymore.

Myth 3: Unlisted Shares Are Always Risky

Truth:
 Every investment has some level of risk—even listed shares. Yes, unlisted shares may carry higher risk, but they can also offer higher returns. The key is to research the company well.

Myth 4: You Can’t Sell Unlisted Shares Easily

Truth:
 While unlisted shares are not as liquid as listed ones, you can still sell them. There are platforms, private investors, and brokers who deal in unlisted shares. Some shares become highly in demand before the company’s IPO, making it easier to exit. You just need to plan your investment horizon accordingly.

Myth 5: Unlisted Shares Don’t Offer Any Returns

Truth:
 This is completely false. In fact, many unlisted shares offer great long-term returns. If you invest in a good company before it grows big or goes for an IPO, the value of your investment can increase significantly. Some unlisted companies also give dividends or bonuses to shareholders.

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Final Thoughts

Unlisted shares are a great way to diversify your investment portfolio, but you need to be careful.

By busting these common myths, we hope you now have a clearer view of the real potential of unlisted shares. Just like any other investment, knowledge and patience are the keys to success!

To buy and sell unlisted shares contact us today….


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