How To Invest In NSE's Unlisted Shares: Process, Benefits & Risks Explained
Interest in unlisted shares like NSE is rising, especially among retail investors looking for early entry opportunities.
Investing in unlisted shares and stocks that aren't yet listed on stock exchanges is becoming more popular among investors looking for higher returns. Big names like Chennai Super Kings (CSK) and the National Stock Exchange (NSE) have caught the attention of not just high-net-worth individuals but also retail investors.
With NSE's IPO opening tomorrow, July 30, interest has spiked. According to a Moneycontrol report, the number of retail investors holding NSE shares worth up to Rs 2 lakh jumped to 1.46 lakh during April-June 2025, up from just 33,896 in the previous quarter. The overall shareholder count also soared to 1.59 lakh, making NSE one of the largest unlisted companies in India by the number of shareholders.
The rising popularity has also sparked concern. A public interest litigation (PIL) was filed in the Bombay High Court asking the Securities and Exchange Board of India (SEBI) to step in and regulate platforms selling unlisted shares. Though the PIL was withdrawn, it highlighted potential risks linked to these quasi-exchanges.
Why Investors Are Interested
One of the reasons investors go for unlisted shares is the chance to buy into promising companies before they go public, often at a lower price.
'They could be available at discounted valuations. Investing in unlisted stocks is similar to putting your money in listed stocks in the sense that investors want to own good assets available at good prices," said Vijay Kuppa, CEO of Incred Money, as quoted by Moneycontrol.
The key attraction is the belief that these companies will grow and get listed, giving early investors a strong return. 'Essentially, these investors are betting on growth that the company will list and its value will surge," Rochak Bakshi, founder of True North Finance, told Moneycontrol.
How to Invest & What to Watch Out For
Retail investors can buy unlisted shares through online platforms, wealthtech firms, or wealth management services that facilitate such deals. In some cases, you can even approach employees who may have received shares through Employee Stock Ownership Plans (ESOPs), as per Moneycontrol.
Once you have picked a platform or source, you will need to complete a KYC process using your PAN and Aadhaar details before making any transaction.
That said, investing in unlisted shares carries real risks. Since these shares do not fall under SEBI's direct oversight, you must be extra cautious. Some platforms may offer deals that look too good to be true, and often are.
One of the biggest risks is liquidity, according to Moneycontrol. Unlike listed stocks or mutual funds, it is not always easy to sell unlisted shares when you want to exit. These shares also don't have the same level of public data or market tracking, so doing your research is crucial.
Think Before You Invest
Experienced investors usually allocate only a small part of their portfolio to unlisted shares because they know the risks. Even if you are investing a small amount, approach it with the same seriousness as listed stock investments.
In addition, study the company's financials, understand its growth prospects, and avoid buying into the hype. Unlisted shares can offer exciting returns, but only when you invest wisely.
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
12 minutes ago
- Time of India
PSBs told to setup one portal for startup lending
The government has directed public sector banks to create a unified digital portal to streamline startup loan applications, sanctions, and information-sharing. Expected by October, the proposed startup hub portal will feature a single application form accessible to all PSBs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The government has asked state-run banks to explore the idea of setting up a " common startup hub portal " for meeting the financial needs of startups , officials centralised platform, proposed to be launched by October, would enable streamlined startup applications, loan sanctions , cross-lending and information-sharing across public sector banks (PSBs), they said."The portal will act as a single destination for all startups looking for loans, and will have a common application form. All PSBs will be able to access their details and participate as per their business plans," said one of the officials, who did not wish to be government has been pushing banks to scale up lending to startups, and a common portal is expected to speed up loan sanctions and to startups by PSBs in 2024-25 stood at Rs 956 crore."The portal will ensure a full end-to-end digital sanction and approval process. We are also working to link it with the Jan Samarth Portal. This new platform will be managed through PSB Alliance," a bank executive said on condition of government has asked PSBs to collaborate with educational institutions and incubation centres to identify and monitor early-stage startups to establish formal banking linkages. Punjab National Bank chief executive Ashok Chandra told ET in an interview after the June quarter results that the bank had come out with a new startup lending policy."We have created startup hubs in seven centres across the country and are going to have a memorandum of understanding with the many incubation centres at IIT Mumbai, Kanpur, Chennai and Delhi," he had a review meeting of PSBs in June, finance minister Nirmala Sitharaman had asked banks to proactively identify emerging commercial growth areas for the next decade and deepen corporate lending in productive sectors with a strong focus on maintaining robust underwriting and risk-management government has been pushing lenders to look at internal collaboration, create common utilities and scale them up to improve their performance and competitiveness.
New Indian Express
15 minutes ago
- New Indian Express
Govt admits lower mileage in ethanol-blended fuel
Amid concerns and debates that ethanol blending in petrol has significantly reduced fuel efficiency and accelerated wear and tear of vehicle parts, the Ministry of Petroleum and Natural Gas recently addressed the impact of 20% ethanol blending (E20) on vehicle performance. The Ministry confirmed that ethanol has a lower energy density than petrol, which can cause a slight decrease in mileage. Four-wheelers designed for E10 and calibrated for E20 may experience a 1–2% drop in mileage, while other vehicles may see a reduction of 3–6% While the government's claim of up to 6% reduction in mileage on older vehicles suggests a very limited impact, consumers and some experts believe the impact on mileage to be a little higher. 'By its chemical composition, ethanol has lower energy per unit volume than petrol. This results in reduced fuel efficiency from any ethanol-blended petrol when compared to unadulterated petrol. While our internal estimate shows that E20 petrol gives 5-7% lower mileage than unadulterated petrol, primarily in vehicles manufactured before 2023, consumer feedback suggests the impact to be in double digits in real-world driving conditions,' said the head technical officer of a leading car company on the condition of anonymity. He advocated a discount for consumers on blended petrol given that ethanol is sourced locally and is much cheaper than crude. He said that this may compensate for the increased running costs. The administered ex-mill price of ethanol for blending purpose has been fixed at Rs 57.97 per litre. A GST of 5% levied on ethanol for blending with petrol, taking the per litre price to Rs 61. Petrol is priced around Rs 95 per lite (in Delhi).
Time of India
23 minutes ago
- Time of India
Falcon fraud: Rs 21 cr diverted to Goa casino, says Enforcement Directorate
Hyderabad: Enforcement Directorate's (ED's) investigation into the Falcon invoice fraud found that Amardeep Kumar, the key accused and director of Capital Protection Force Pvt Ltd, has allegedly diverted nearly Rs 21 crore to a Goa-based casino between 2021 and 2023, using both company and personal accounts. The casino alerted financial intelligence agencies regarding suspicious high-value transactions linked to Amardeep Kumar. Capital collected investments worth Rs 792 crore from investors under the guise of 'Falcon Invoice Discounting Scheme'. The accused promised investors high returns by claiming the investments would be used for invoice discounting activities. An app named 'Falcon Invoice' was developed to collect deposits and was promoted through Google, YouTube, and other digital platforms. However, the probe found that no actual invoice discounting business existed. ED stated that the scam proceeds were instead diverted to various personal and business interests of Amardeep. These include investments in equity shares, unsecured loans to companies, the purchase of an aircraft, and the acquisition of immovable properties. Properties were found registered in the names of Amardeep, his family members, Rhett Healthcare Pvt Ltd, and Rhett Herbal Pvt Ltd. A portion of the proceeds of crime was allegedly routed to a prominent casino in Goa. In March 2025, ED had seized a private jet — Hawker 800A — allegedly bought by Amardeep using proceeds from the scam. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad According to the financial documents analysis, Rs 2.8 crore was paid directly from the company's account, while the remaining Rs 18.5 crore was transferred from Amardeep's personal accounts to the casino. The personal accounts of Amardeep had already received large sums — Rs 55 crore and Rs 35 crore respectively — from the Capital Protection Force company's main account. ED had found that Rs 2.82 crore was transferred directly from the account of Capital Protection Force Pvt Ltd to the company owned by the casino between Oct 2021 and March 2023. Another Rs 16.3 crore was routed from Amardeep's personal account — into which approximately Rs 55 crore was earlier received from the company — between April 2021 and Feb 2023. Additionally, Rs 1.15 crore was transferred between May 2023 and July 2023 from another personal account of Amardeep, which received about Rs 35 crore from the company's funds.
