Can I Sell My Unlisted Shares?

1. Finding a Buyer:

Direct Search: You can actively look for potential buyers within your network or through online platforms dedicated to unlisted shares.
Brokers Specializing in Unlisted Shares: Consider using brokers who focus on unlisted securities. They often provide platforms to list your shares and connect you with interested buyers.

2. Transferring the Shares:

Depository Accounts: Transfers of unlisted shares are generally conducted through your Depository Account, either with CDSL (Central Depository Services Limited) or NSDL (National Securities Depository Limited).
Process: Once you find a buyer, you’ll need to initiate the transfer of shares from your account to the buyer’s Depository Account. This process involves completing a share transfer form and may require the buyer’s details, including their Demat account information.

3. Understanding the Process:

No Brokerage Fees: Unlike listed shares, you will not pay brokerage fees to a stock exchange since unlisted shares are not traded on any exchange.

Over-the-Counter Market: Transactions for unlisted shares typically occur in the over-the-counter (OTC) market, meaning that buyers and sellers negotiate directly without an intermediary exchange.

Liquidity Considerations: Expect lower liquidity for unlisted shares compared to listed shares. Finding a buyer may take longer, and you might have to accept a lower price than anticipated.

Valuation: Before selling, it’s crucial to understand the market valuation of your unlisted shares. Conduct research or consult with financial advisors to determine a reasonable asking price.

Conclusion

While selling unlisted shares is possible, it requires a different approach than selling listed shares. By finding the right buyer, understanding the transfer process through your Depository Account, and being aware of the characteristics of unlisted shares, you can navigate the selling process more effectively.