What are Unlisted Shares?
Equity shares that are not traded on the secondary market i.e. stock exchange are been identified as Unlisted Equity Shares or Unlisted Stocks. Buying & Selling of Unlisted Equity Shares is done between two interested parties exchanging the shares from one demat to other through off-market trade.
Why Invest In Unlisted Shares?
India has just started to unlock its growth story. There are many Indian companies that are unlisted but have enormous potential. The improvement in tech facilities, ease of doing business, and financial resources have revolutionized the way New India functions and in the process created a lot of companies that have great potential. A lot of such companies are unlisted and our research team researches and studies all these companies and choose only the best ones to invest in.
Potential for Higher Returns: Unlisted shares often represent early-stage or privately held companies with significant growth potential. Investing in these shares can offer the opportunity for substantial returns if the company succeeds and eventually goes public or gets acquired at a higher valuation.
Access to Promising Startups: Unlisted shares provide investors with access to innovative startups and high-growth companies that may not be available in the public markets.
Diversification: Including unlisted shares in a portfolio can enhance diversification by adding exposure to assets that are not correlated with publicly traded stocks or other traditional investments.
Potential for Investor Influence: Investors in unlisted shares, especially venture capitalists and angel investors, may have the opportunity to actively participate in the strategic direction and decision-making of the company. This level of involvement can potentially add value and contribute to the company’s success.
Our Top Suggested Unlisted Shares Are:
Category II Alternative Investment Funds
Invest in Unlisted Shares in India through Category II AIF
Looking to invest in unlisted shares in India but unsure where to start?
Our Category II Alternative Investment Fund (AIF) offers a trusted, structured, and professionally managed route to access high-growth private companies.
Why Choose This Investment Route?
- SEBI-Regulated & Transparent Structure: Invest through a Category II AIF, governed by SEBI regulations, ensuring high standards of compliance, transparency, and investor protection. This provides a secure and credible platform compared to informal or direct unlisted deals.
- Access to Exclusive Pre-IPO Opportunities: Gain entry into high-potential private companies before they go public—opportunities typically unavailable to individual investors. Early access can significantly enhance return potential as companies scale.
- Expert Fund Managemen: Your investments are managed by experienced professionals with strong industry networks, deep research capabilities, and a disciplined investment approach—helping identify quality opportunities and mitigate risks.
- Attractive Entry Valuations: Invest at relatively early-stage valuations, offering the potential for substantial upside as companies mature, expand, and approach liquidity events like IPOs or strategic exits.
- Diversification with Reduced Risk: Instead of investing in a single company, your capital is spread across a curated portfolio of unlisted businesses—reducing concentration risk and improving the probability of consistent returns.
- Hassle-Free & Structured Investing: Avoid the operational challenges of sourcing deals, conducting due diligence, and managing paperwork. The AIF structure ensures a smooth, professionally managed investment experience from entry to exit.
- Strategic Capital Deployment: With a minimum investment of ₹1 Crore, funds are deployed in planned tranches, enabling better timing, disciplined investing, and efficient capital utilization.
- Long-Term Wealth Creation: Designed for an investment horizon of 5–7 years, this strategy aligns with business growth cycles—allowing investors to benefit from value creation and liquidity events like IPOs.
Who Should Consider This?
This investment route is ideal for:
- HNIs and sophisticated investors looking to diversify beyond listed markets
- Investors seeking pre-IPO investment opportunities in India
- Those who prefer professional fund management over direct investing
Why Ashutosh Financial Services?
Ashutosh Financial Services is a 25+ years old company that has been assisting individuals and companies in various aspects like Investment, Insurance, Income Tax Planning, etc. At Ashutosh Financial Services we always put the investors’ interests first and do our best to ensure that investors’ objectives are achieved in a timely manner. We strive to make every Indian financially literate and independent.
We at Ashutosh Financial Services put maximum importance on understanding your Investment objectives and creating a customized investment plan to ensure the complete achievement of your investment goals. We pride ourselves to be the best goal-based planners. Post Investment, we keep regular track of all your investments to ensure the complete achievement of your investment objectives.
Through our years of experience, we at Ashutosh Financial Services have created a process through which we aim to provide you with the best investment-related services and ensure that you have a hassle-free experience. We have a team of well-qualified and experienced members that are more than enough capable to assist you regarding all your investment matters.
Preliminary
Discussion
In the preliminary discussion, we will inform you all about unlisted shares. We will also discuss in detail the risks and benefits of investing in unlisted shares.
Research
&
Analysis
We, at Ashutosh Financial Services, take immense pride in being one of the very few companies in this field to have our own Research & Analysis Department. After our preliminary discussion and your preliminary approval, our research team will pick the right stock or the right mix of unlisted stocks that will best suit your investment goals.
Investment
Process
Once you have approved the suggested unlisted shares, we will begin the investment process. You will have to pay the agreed amount for the unlisted shares via a cheque or net banking & once the payment is received it will take around 3 days for the shares to reflect in your demat account. Unlisted shares will be credited to your demat account only.
After
Investment
Process
Once the investment is done, you will be provided with a dedicated Relationship Manager. All your queries will be solved by the relationship manager.
Our aim is to become your one-stop solution for your financial needs. Through our expert and qualified team, we try to give you the best advice regarding your investments. We also keep ourselves updated with all the activities happening in the world of finance. We aim to provide you with quality & unbiased services to secure your goals and future needs. We at Ashutosh Financial Services, are committed to continuously providing financial services to our investors to the best of our ability.
Our Key USPs are as under
Shares which are not listed on stock exchange.
Taxation of Unlisted Shares Before Listing
| Period of holding | Type of gain | Tax rates for resident |
|---|---|---|
| Less than 24 months | STCG | As per Tax Slab |
| More than 24 months | LTCG | 20% (with indexation) (Section 112) |
| Dividend | - | As per Tax Slab |
Taxation of Unlisted Shares After Listing
| Period of holding | Type of gain | Tax rates for resident |
|---|---|---|
| Less than 12 months | STCG | As per Tax Slab |
| More than 12 months | LTCG | 20% (with indexation) or 10% (without indexation) (Section 112) |
