Early Access to High-Growth Companies.

Unlisted shares don't trade on an exchange, so there is no order book and no live price. Inventory is built up by a distribution network that aggregates shares from existing shareholders — employees exercising ESOPs, early investors seeking partial exits, or promoters releasing small tranches — and warehouses them so they can be allotted to incoming investors at a transparent price.

Settlement is off-market. Once the trade is agreed, shares move from the seller's demat to your demat via a CDSL/NSDL off-market transfer, and funds are paid against delivery. The whole cycle typically settles in 3–7 working days.

Unlisted positions are not for capital you may need in the short term. The realistic horizon is 2–5 years for late-stage pre-IPO names, and longer for earlier-stage private companies. Pricing in the interim can be opaque and may move sharply on funding rounds or sentiment shifts.

Three exit paths exist. An IPO is the cleanest — your shares list on the exchange (subject to any lock-in) and you can sell at market price. A secondary sale through the same distribution network is possible if there are willing buyers at the prevailing price. A strategic transaction — acquisition or buyback — is the third route, dependent on company-specific events.

Treat an unlisted investment with the same rigour as a private equity allocation. Review the company's most recent audited financials, growth trajectory, capital structure (including ESOP pool and any preference share overhang), and the latest funding round valuation as a price reference.

Understand the lock-in implications if the company lists — SEBI rules typically impose a six-month lock-in on pre-IPO shareholders. Factor in the wider bid-ask spread, the absence of daily mark-to-market, and the tax treatment: gains held beyond 24 months qualify as long-term capital gains taxed at 12.5% (without indexation), under current rules.