A vast market operates daily beyond the formal stock exchanges — the market for unlisted shares. These shares are traded through the Over-the-Counter (OTC) market and represent a dynamic investment space that many investors overlook. This article covers all the essential aspects you should know about investing in unlisted equities.
Unlisted shares are the shares of companies that are not listed on formal stock exchanges such as the NSE or BSE. Examples include companies like Swiggy, BYJU’S, and even the National Stock Exchange (NSE) itself. Companies often remain unlisted due to not meeting listing requirements or strategic preference for staying private.
These shares are inherently riskier due to limited liquidity and lower transparency. However, they often come with more stable valuations. Identifying companies with strong fundamentals and growth potential can yield substantial returns, particularly if the company eventually goes public.
Unlisted shares are traded through OTC mechanisms, where transactions occur directly between buyers and sellers via intermediaries. Because this market is unregulated and informal, there is some credit risk.
Nonetheless, reputable market participants such as brokerage firms, institutional investors, and HNIs dominate the space. Partnering with a trustworthy intermediary significantly reduces risks. Still, the major risk lies in selecting the right company — if it underperforms or never lists, your capital may be at risk. Due diligence is essential.
At Invest More Wealth Advisory, we are a trusted name in the unlisted shares space. Our deep market knowledge and client-first approach have helped hundreds of investors access high-growth opportunities before IPO.
Unlisted shares can be hidden gems with exponential growth potential if chosen wisely. Success lies in selecting fundamentally strong companies with the potential to go public and partnering with an experienced, trusted intermediary.
At Invest More Wealth Advisory, we go beyond executing trades — we build long-term investor relationships based on trust, transparency, and performance.