Existing shareholders of the Company sell shares in the Unlisted Equity Space. Individuals or corporations, both can sell. However, it must be noted that this is a secondary off market transaction and the Company is NOT involved in any way in the transaction.

In Demat & Physical form.

Any company which has more than 100 shareholders can pass a Board resolution and get its shares dematerialized with NSDL/CDSL.

Usually it takes T+2 working days for delivery in CDSL and NSDL account.

They get unlisted shares at reasonable prices than already listed shares. Also, there is a potential growth seen in these shares. To participate in the growth of the company. Get opportunities which otherwise would ONLY be available to big entities like PE Firms etc. Get Allocation at reasonable valuations.

Yes. As per SEBI rules, all pre-IPO shares have a lock in for 1 year from the date of listing.

Basically, the following three risks:

Management Risk-The Company Management may execute poorly and the Company’s results falter.

Timeline Risk-The Company takes longer than expected to get listed.

Liquidity Risk-Unlisted shares are inherently illiquid, and you may not be able to sell your shares in a hurry.

Capital gains on sale of unlisted shares will be classified as long term, if held for more than 24 months. STCG on sale of unlisted equity shares is taxable at applicable marginal tax rate. LTCG on sale of unlisted equity shares is taxable at 10% without indexation and 20% with indexation.