{"id":4252,"date":"2022-06-13T14:20:23","date_gmt":"2022-06-13T14:20:23","guid":{"rendered":"https:\/\/rakshithpai.com\/?p=4252"},"modified":"2023-12-22T14:25:54","modified_gmt":"2023-12-22T14:25:54","slug":"how-to-invest-in-unlisted-companies","status":"publish","type":"post","link":"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/","title":{"rendered":"How to Invest in Unlisted Companies? Pros &#038; Cons of Owning Unlisted shares:"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662d144f27a56\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\" style='display:none' id=\"ez-toc-cssicon-toggle-item-662d144f27a56\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Introduction\" title=\"Introduction:\">Introduction:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#What_are_Unlisted_Companies\" title=\"What are Unlisted Companies?\">What are Unlisted Companies?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#To_identify_an_unlisted_company_consider_the_following\" title=\"To identify an unlisted company, consider the following:&nbsp;\">To identify an unlisted company, consider the following:&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#How_to_Pick_Unlisted_Companies_for_Investment\" title=\"How to Pick Unlisted Companies for Investment?\">How to Pick Unlisted Companies for Investment?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Pick_a_Known_Company\" title=\"Pick a Known Company\">Pick a Known Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Towards_IPO\" title=\"Towards IPO\">Towards IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Revolutionary_Business\" title=\"Revolutionary Business\">Revolutionary Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Relatively_Liquid_Investment\" title=\"Relatively Liquid Investment\">Relatively Liquid Investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Follow_the_Professionals\" title=\"Follow the Professionals\">Follow the Professionals<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Pros_of_Investing_in_Unlisted_Companies\" title=\"Pros of Investing in Unlisted Companies:\">Pros of Investing in Unlisted Companies:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Diversification\" title=\"Diversification\">Diversification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Attractive_Returns\" title=\"Attractive Returns\">Attractive Returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Long-term_Benefits\" title=\"Long-term Benefits\">Long-term Benefits<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Cons_of_Investing_in_Unlisted_Companies\" title=\"Cons of Investing in Unlisted Companies:\">Cons of Investing in Unlisted Companies:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Lack_of_Regulations\" title=\"Lack of Regulations\">Lack of Regulations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Uncertain_Investment\" title=\"Uncertain Investment\">Uncertain Investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Illiquid_Investment\" title=\"Illiquid Investment\">Illiquid Investment<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Guidelines_for_Investing_in_Unlisted_Companies\" title=\"Guidelines for Investing in Unlisted Companies:\">Guidelines for Investing in Unlisted Companies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Tax_Implications_of_Unlisted_Companies_Shares\" title=\"Tax Implications of Unlisted Companies Shares:\">Tax Implications of Unlisted Companies Shares:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Buying_Unlisted_Shares_of_Pre_IPO_Companies\" title=\"Buying Unlisted Shares of Pre IPO Companies:\">Buying Unlisted Shares of Pre IPO Companies:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#How_to_Buy_Unlisted_Securities_from_Zerodha\" title=\"How to Buy Unlisted Securities from Zerodha?\">How to Buy Unlisted Securities from Zerodha?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Conclusion\" title=\"Conclusion:\">Conclusion:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#FAQs\" title=\"FAQs:\">FAQs:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/rakshithpai.com\/how-to-invest-in-unlisted-companies\/#Also_read\" title=\"Also read: \">Also read: <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><strong>Introduction:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Firms that are featured and traded on a specific stock market are referred to as listed companies. A corporation must meet and continue to meet a number of requirements in order to be and remain listed on a stock market.&nbsp;<\/p>\n\n\n\n<p><strong>A private company must become public in order to sell its shares to the general public; once it goes public, it registers with a stock exchange. Businesses like to go public so they may minimize their debt and also have alternative sources of funding besides bank loans.&nbsp;<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>A public firm is not always required to be listed. A non-listed public corporation is one that is not listed on any stock exchange but may have an infinite number of shareholders in order to obtain funds for any commercial endeavor.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/upstox.com\/open-account\/?f=FN1853\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Upstox Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Unlisted_Companies\"><\/span><strong>What are Unlisted Companies?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These are privately owned enterprises that are not listed on a stock exchange. An unlisted company cannot raise money from the general public. They are becoming investors in capital. The shares are traded &#8220;over the counter,&#8221; where the terms of the agreement can be tailored to the needs of the parties involved (buyers and sellers); hence, the sharing of controls are reserved. Companies that are not publicly traded have greater control over their activities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To_identify_an_unlisted_company_consider_the_following\"><\/span><strong>To identify an unlisted company, consider the following:&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul>\n<li>An unlisted corporation offers shares via private placement.<\/li>\n\n\n\n<li>Directors&#8217; liability is limited and only towards the shareholders of such an unlisted company.<\/li>\n\n\n\n<li>When it comes to the investors&#8217; exit strategy, the promoters are expected to pay for it and set aside money for it.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Pick_Unlisted_Companies_for_Investment\"><\/span><strong>How to Pick Unlisted Companies for Investment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pick_a_Known_Company\"><\/span><strong>Pick a Known Company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As <strong>Mr.Peter Lynch<\/strong> says &#8211; <strong>\u201cKnow what you own, and know why you own it\u201d.<\/strong><\/p>\n\n\n\n<p>In order to be successful in Investing, be it in a listed space or an unlisted space, you must know what you own. So, the best way to start is by checking those industries, those sectors, and those companies that you are aware of.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Towards_IPO\"><\/span><strong>Towards IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies on the path to an IPO may still provide an advantage relative to their initial public offering pricing. However, this is merely one of many benefits. Typically, these <strong>firms have already published their DRHP.<\/strong><\/p>\n\n\n\n<p>These are documents that include all pertinent information about the firm and are also known as holy grails. They are also subsidiaries of publicly traded firms that are professionally managed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revolutionary_Business\"><\/span><strong>Revolutionary Business<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This remains the primary motivation for investing. Look for industries of the future in which to invest. These are often in their infancy, with very few market participants. And they are certainly not listed. In recent years, notable sectors have included gambling, SaaS, Fintech, and e-commerce, among others.<\/p>\n\n\n\n<p><strong>Unlisted Companies are those that could the next big thing in the making.&nbsp;<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe loading=\"lazy\" title=\"Top 3 Sectors You Must Invest In Indian Stock Market - 2022! #Sector\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/olutNtsC1tI?list=PLxzf4Rylux_mn-Hy8EH5EWNxdG-4yLSfD\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relatively_Liquid_Investment\"><\/span><strong>Relatively Liquid Investment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlisted companies are known for their lack of liquidity. Usually, it is very difficult to find a seller of the shares you wish to buy. And, once you bought the shares, it&#8217;s still more difficult to sell the shares. Such is the liquidness of unlisted companies.&nbsp;<\/p>\n\n\n\n<p>Hence, <strong>When searching for unlisted firms, liquidity is a crucial factor.<\/strong> In general, well-known and well-established corporations have a large number of interested investors and significant trading volumes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Follow_the_Professionals\"><\/span><strong>Follow the Professionals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Here you may uncover firms where notable founders of massive startups are reentering areas in which they believe. You could also look to see if well-known angel investors and businessmen\/tycoons have put money into them.<\/p>\n\n\n\n<p><strong>Typically, these angel investors have a knack for identifying tomorrow&#8217;s most successful firms. <\/strong>In addition, they come with an entire investing staff that conducts the required research to guarantee that their money is in good hands.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/upstox.com\/open-account\/?f=FN1853\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Upstox Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros_of_Investing_in_Unlisted_Companies\"><\/span><strong>Pros of Investing in Unlisted Companies:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investing possibilities are everywhere. And one of the best ways to make the ideal investment is to seek out disruptive industries of the future before they explode. This is where the majority of value creation occurs.<\/p>\n\n\n\n<p>By the time they entered the stock market, their early mover advantage would have been significantly weakened.&nbsp;<\/p>\n\n\n\n<p><strong>By the time they choose to IPO, these investments would have easily quadrupled your initial investment. Over the last five years, the average gross portfolio return has exceeded a 25% CAGR.<\/strong><\/p>\n\n\n\n<p>Additionally, there are several other advantages. These include spreading your capital into non-existent industries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Diversification\"><\/span><strong>Diversification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Diversification is a risk management approach that blends several investment types within a portfolio. A diversified portfolio consists of a variety of asset classes and investment vehicles in an effort to reduce exposure to any one asset or risk. This strategy is based on the idea that a diversified portfolio will, on average, give better long-term returns and lower the risk of each holding or investment.<\/p>\n\n\n\n<p>As investors, we are all aware of the benefits of diversifying our portfolios. The more you diversify, the lower the risk of your investment portfolio, correct?<\/p>\n\n\n\n<p><strong>Unlisted equities are either not volatile or just moderately volatile. If you have highly volatile stocks in your portfolio, you can reduce the associated risks by including some quality unlisted stocks.<\/strong><\/p>\n\n\n\n<p>This would not only reduce risk but also improve the likelihood of larger profit margins.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-embed wp-block-embed-embed\"><blockquote class=\"wp-embedded-content\" data-secret=\"WfsbpSgyGW\"><a href=\"https:\/\/rakshithpai.com\/how-to-diversify-stock-portfolio\/\">How to Diversify Your Stock Portfolio<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;How to Diversify Your Stock Portfolio&#8221; &#8212; \" src=\"https:\/\/rakshithpai.com\/how-to-diversify-stock-portfolio\/embed\/#?secret=q6eYql6YQE#?secret=WfsbpSgyGW\" data-secret=\"WfsbpSgyGW\" width=\"200\" height=\"200\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Attractive_Returns\"><\/span><strong>Attractive Returns<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Even though the unlisted stock market isn&#8217;t very liquid, investors can turn this disadvantage into an advantage.<\/p>\n\n\n\n<p>Due to the lack of liquidity, the stock price remains undervalued or overpriced for an extended period of time. You must look for undervalued investments. Then, <strong>if the stock is later listed and the company performs well with high returns, you may make huge profits in the long run.<\/strong><\/p>\n\n\n\n<p>As said above, Over the last five years, the average gross portfolio return for unlisted space has exceeded a 25% CAGR.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long-term_Benefits\"><\/span><strong>Long-term Benefits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Unlisted equities are neither suitable for short-term investment nor trading.<\/strong> Therefore, there is no rush to acquire and sell them to generate a profit.<\/p>\n\n\n\n<p>You may simply conduct research, look for the greatest unlisted stock, invest, and then wait. There is no need to constantly bite your fingers when the market opens or shuts.<\/p>\n\n\n\n<p>You may just wait till the stock price reaches your chosen level before selling it and depositing the proceeds into your bank account.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-embed wp-block-embed-embed\"><blockquote class=\"wp-embedded-content\" data-secret=\"Le2Pnytde0\"><a href=\"https:\/\/rakshithpai.com\/best-stocks-to-buy-in-india\/\">Best Long Term Stocks in India &#8211; 2022<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Best Long Term Stocks in India &#8211; 2022&#8221; &#8212; \" src=\"https:\/\/rakshithpai.com\/best-stocks-to-buy-in-india\/embed\/#?secret=mUis5aImcP#?secret=Le2Pnytde0\" data-secret=\"Le2Pnytde0\" width=\"200\" height=\"200\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/upstox.com\/open-account\/?f=FN1853\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Upstox Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cons_of_Investing_in_Unlisted_Companies\"><\/span><strong>Cons of Investing in Unlisted Companies:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unlisted stocks carry a greater risk due to the lack of broad information about these firms. In addition, selling these stocks presents additional difficulties. An initial public offering (IPO) or a secondary market exit are two ways to get out of an investment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lack_of_Regulations\"><\/span><strong>Lack of Regulations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Investors in unlisted equities are not afforded the security and protection given by SEBI or the stock market. Always, there is substantial counterparty risk.<\/p>\n\n\n\n<p>For instance, after placing an order, you must transfer the funds to the intermediary&#8217;s account. Then, within T+3 days, the transfer of the shares occurs. The intermediary may opt not to transfer the shares, resulting in the loss of your funds.<\/p>\n\n\n\n<p>In addition, unlisted firms do not need to adhere to the strict registrar or other similar organization criteria when selling their shares. <strong>In the absence of a regulating agency, prices can also be substantially influenced by the middlemen.<\/strong><\/p>\n\n\n\n<p>This stock is traded off-exchange, which is not an official stock exchange. OTC does not have a physical presence. There are just two parties participating in the exchange.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Uncertain_Investment\"><\/span><strong>Uncertain Investment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There is always uncertainty around the company as it can wind up at any time. <strong>There is also uncertainty regarding the price of the unlisted shares. <\/strong>This is because the price of these shares is completely based on assumptions.<\/p>\n\n\n\n<p>So, now that you know the risks involved in this investment, let us see some of the guidelines which you can follow to mitigate these investment risks to a great extent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Illiquid_Investment\"><\/span><strong>Illiquid Investment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlisted stock is extremely illiquid. They are not traded on a stock market among numerous buyers and sellers.<\/p>\n\n\n\n<p><strong>If you need to purchase or sell, you must have a designated point of contact, which is the middleman. If the middleman is unwilling to purchase, you must seek out more buyers.<\/strong><\/p>\n\n\n\n<p>Therefore, these shares cannot be exchanged efficiently. It is a lengthy and laborious procedure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Guidelines_for_Investing_in_Unlisted_Companies\"><\/span><strong>Guidelines for Investing in Unlisted Companies:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>You must determine if the company in which you are investing is registered with the Registrar of Companies. You can do so by contacting the Office of the Company Registrar or by visiting the MCA (Ministry of Corporate Affairs) Website.<\/li>\n\n\n\n<li>Before you invest, you should obtain the company&#8217;s prospectus and study it.<\/li>\n\n\n\n<li>The firm must also have a good reputation. There are hundreds of registered businesses like this. Nonetheless, a few of these are popular.<\/li>\n\n\n\n<li>Look at the company&#8217;s fundamental analysis. Ensure the firm is consistently profitable, or at least not incur losses. Determine the number of years the company has been in operation. And, has it given any red flags in all these years of its existence?<\/li>\n\n\n\n<li>Check with the company&#8217;s management before purchasing unlisted shares. You must also investigate the management&#8217;s performance and corporate decision-making, among other variables.<\/li>\n\n\n\n<li>Determine the company&#8217;s plans and how they will affect the company&#8217;s growth.<\/li>\n\n\n\n<li>If someone is giving you a return that is excessively high, you should investigate it carefully. Oftentimes, if something sounds too good to be true, it is not worth your time.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-4 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/upstox.com\/open-account\/?f=FN1853\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Upstox Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Implications_of_Unlisted_Companies_Shares\"><\/span><strong>Tax Implications of Unlisted Companies Shares:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whether unlisted stocks are subject to capital gains tax depends on whether they are held for a long or short period of time. <strong>If the unlisted stocks are held for less than 24 months, i.e., less than two years prior to sale, the profits are considered short-term capital gains and are subject to taxation.<\/strong> Short-term capital gains are subject to taxation based on the investor&#8217;s income tax bracket.<\/p>\n\n\n\n<p>Similarly, long-term benefits result from holding unlisted equities for more than 24 months prior to selling. <strong>Long-term capital gains are taxed at a rate of 20%, with indexation.<\/strong> Indexation means that the price of an asset can go up to keep up with inflation.<\/p>\n\n\n\n<p>Calculating the capital gain for unlisted shares differs from that of public shares. In the case of listed securities, the purchase price and selling price are easily accessible via the stock market. For unlisted shares, however, the fair market value must be calculated.&nbsp;<\/p>\n\n\n\n<p><strong>The higher the fair market value and the actual selling price is regarded as the &#8220;sale consideration&#8221; for the shares.<\/strong> From this value, the cost of transfer and purchase is removed to determine the capital gains. Remember that if the shares are held for more than 24 months after being transferred, their indexed acquisition cost, not their actual purchase price, must be used to figure out how much they cost.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-embed wp-block-embed-embed\"><blockquote class=\"wp-embedded-content\" data-secret=\"HsmVBIeHWR\"><a href=\"https:\/\/rakshithpai.com\/easy-ways-to-save-income-tax\/\">15 Best Ways to Save Income Tax in India:<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;15 Best Ways to Save Income Tax in India:&#8221; &#8212; \" src=\"https:\/\/rakshithpai.com\/easy-ways-to-save-income-tax\/embed\/#?secret=CU3ytniD54#?secret=HsmVBIeHWR\" data-secret=\"HsmVBIeHWR\" width=\"200\" height=\"200\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buying_Unlisted_Shares_of_Pre_IPO_Companies\"><\/span><strong>Buying Unlisted Shares of Pre IPO Companies:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>By purchasing unlisted shares, you can participate in a private firm before its initial public offering (IPO). <strong>One of the primary reasons investors purchase these shares is the anticipated returns. Companies sell these shares at a discount to entice investors to purchase a substantial interest in their unlisted stock.<\/strong> So, the price of these shares might go up during the IPO, giving investors a big return on their money.<\/p>\n\n\n\n<p>Anyone wishing to purchase unlisted shares must have a Demat account, as these shares may only be transferred online. This is to ensure corporate sector transparency, investor protection, and governance.<\/p>\n\n\n\n<p><strong>You can buy such unlisted shares from the Company itself, its Employees &amp; other shareholders, Financial Institutions, etc.&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Buy_Unlisted_Securities_from_Zerodha\"><\/span><strong>How to Buy Unlisted Securities from Zerodha?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Demat account enables the electronic holding of securities. The securities you hold are not required to be publicly traded.<\/p>\n\n\n\n<p>You can use your <a href=\"https:\/\/rakshithpai.com\/zerodha-review\/\">Zerodha<\/a> Demat account to store shares, debentures, and other securities as long as they are available on the CDSL repository. You can do a search for the company&#8217;s name to find out if the securities are available on CDSL.<\/p>\n\n\n\n<p><strong>Using &#8220;CDSL&#8217;s Easiest&#8221; tool, you can transfer unlisted debentures or shares of unlisted firms (pre-IPO). Due to the lack of liquidity in the market for unlisted securities, which means it&#8217;s hard to find buyers and sellers, you should be more careful when looking into these investment opportunities.<\/strong><\/p>\n\n\n\n<p>On the Kite trading platform, unlisted securities will not be displayed. However, once they are in your Demat account, you are able to view them on the console.<\/p>\n\n\n\n<p>For more information, <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/support.zerodha.com\/category\/trading-and-markets\/corporate-actions\/general\/articles\/unlisted-shares\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">CLICK HERE!<\/a><\/span><\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-5 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline\"><a class=\"wp-block-button__link has-text-color has-background wp-element-button\" href=\"https:\/\/upstox.com\/open-account\/?f=FN1853\" style=\"border-radius:50px;color:#0f0027;background-color:#e4fa00\" rel=\"nofollow\"><strong>Open Upstox Account Now!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Investing in unlisted shares is without a doubt hazardous, but the benefits are enormous. Therefore, you need to conduct thorough research on the firm and ensure that its fundamentals are strong.<\/strong><\/p>\n\n\n\n<p>In conclusion, it can be stated that investors should avoid investing in unlisted firms or any such equity investment activities outside the stock exchange. Unless the promoters are known personally, investors should not purchase shares or liabilities from a publicly-traded firm. Otherwise, investors would risk acquiring shares that are difficult to sell, even at a discount.<\/p>\n\n\n\n<p>Although, It is not required that these shares be transferred to the promoter or the original purchasers in the event of an unlisted public company. These securities can be sold to anybody, but finding a buyer for unlisted shares is typically difficult.&nbsp;<\/p>\n\n\n\n<p>Anybody who purchases these shares may have them transferred on their own in the company&#8217;s registration without the company&#8217;s opposition. Obviously, the seller and buyer must adhere to standard compliance requirements, such as the use of the correct transfer paperwork, the publication of a transfer stamp, etc.&nbsp;<\/p>\n\n\n\n<p>The increase in investments in unlisted shares is related to the expectation of generating enormous returns upon listing. Nonetheless, before investing in these unlisted shares, you must analyze their values and assess their dangers.&nbsp;<\/p>\n\n\n\n<p>Typically, seasoned investors with high-risk profiles and substantial cash on hand engage in unlisted shares because they can better comprehend the company&#8217;s financials and the dangers associated with them.&nbsp;<\/p>\n\n\n\n<p><strong>Purchasing unlisted shares involves a unique set of risks. There is a possibility that the IPO may not take place. In addition to an extremely high commission rate, there is also the possibility of firms disappearing with investor funds. The market&#8217;s volatility also puts long-term investments at severe risk.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-bae3523a uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-false uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-6dc81a19\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Can I Invest in Unlisted Companies?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">You may invest in India&#8217;s leading unlisted firms by investing in start-ups and intermediates, purchasing ESOPs directly from employees or promoters, or investing in PMS and AIF plans that acquire unlisted shares. Risks include illiquidity, capital loss, <a href=\"https:\/\/rakshithpai.com\/best-dividend-paying-stocks-in-india\/\">dividend<\/a> risk, and dilution risk.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-2ae5f64a\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Is it good to buy Unlisted Shares?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Unlisted shares have a distinct risk profile and might supplement an investor&#8217;s portfolio of listed shares. They can be an effective technique for portfolio diversification. Unlisted investments provide comparable or greater return potential than listed shares.<\/p><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-535bbaae uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-false uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-ec2eca5d\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How do I Invest in Private Unlisted Companies?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">You can Invest in Private Unlisted Companies by approaching Middlemen who offer such services (Be cautious when dealing with brokers of such business for many are known to cheat innocent investors). You can also buy Unlisted Securities directly from the Company, its Promoters, Employees, or other Institutions. <\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-028f419e\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Do Unlisted Companies pay Dividends?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Usually, most of the Unlisted Companies Pay hefty Dividends to their shareholders. Infact, it is said that the unlisted companies would pay more dividends than their listed peers. <\/p><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-17e32823 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-false uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-e1111582\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Is an Unlisted share safe?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Unlisted Companies are Safe Investments if you deal with the right person with proper knowledge and one must not invest in any company without due diligence.<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-24b90c19\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>How do I sell Unlisted shares?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Once you own Unlisted shares, they can be accessed via your Demat account. You will get the shares in your NSDL or CDSL account within 24 hours (depending upon your broker). If you have a CDSL account, your shares will be accessible via the Myeasi CDSL Android app or the NSDL Android app. You can sell such shares.<\/p><\/div>\n<\/div>\n\n\n\n<p><strong><strong>Disclaimer: <\/strong><\/strong>All the information on this website is published in good faith and for general information purposes only.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"also-read\"><span class=\"ez-toc-section\" id=\"Also_read\"><\/span><strong>Also read:<\/strong> <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><a href=\"https:\/\/rakshithpai.com\/fixed-income-instruments\/\" target=\"_blank\" rel=\"noreferrer noopener\">Fixed Income Investments &amp; Risks Involved:<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/find-and-invest-stocks-with-moat\/\" target=\"_blank\" rel=\"noreferrer noopener\">Find &amp; Invest in Companies With Strong MOAT:<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/best-sectors-for-long-term-investing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Top 3 Sectors For Long-Term Investing &#8211; 2022<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/easy-ways-to-save-income-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">15 Best Ways to Save Income Tax in India:<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/rakshithpai.com\/how-do-interest-rates-affect-the-stock-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Do Interest Rates Affect the Stock Market?<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Firms that are featured and traded on a specific stock market are referred to as listed companies. A corporation must meet and continue to meet a number of requirements in order to be and remain listed on a stock market.&nbsp; A private company must become public in order to sell its shares to the [&hellip;]<\/p>\n<div class='heateor_sss_sharing_container heateor_sss_vertical_sharing heateor_sss_bottom_sharing' style='width:44px;right: -10px;top: 100px;background-color: Dark Blue' data-heateor-sss-href='https:\/\/rakshithpai.com\/wp-json\/wp\/v2\/posts\/4252'><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Frakshithpai.com%2Fwp-json%2Fwp%2Fv2%2Fposts%2F4252\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg\" 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