What are Unlisted Shares?
Equity shares that are not traded on the secondary market i.e. stock exchange are identified as Unlisted Equity Shares or Unlisted Stocks. Buying and Selling of Unlisted Equity Shares are done between two interested parties exchanging the shares from one demat to another through off-market trade.
Investing In Unlisted Shares:
The IPO frenzy of the last few years has brought out a new investment instrument into the limelight called Unlisted Shares. We all have heard the stories of how we would be millionaires if we had bought and held the shares of Reliance & Wipro in the 1980s. However, we cannot do that but we can buy the stocks of various Next Gen companies that have the potential to disrupt entire industries and generate handsome returns. Hence smart people have stopped to wait for the IPOs of these companies and started to invest in the unlisted shares of these companies.
Investing in unlisted shares of a quality company offers you an early bird advantage wherein you are among the few investors who have the shares of a company even before it is listed.
Below are the benefits of investing in unlisted shares:
We Offer The Unlisted Shares Of The Following Companies:
Credit of taxes paid in India will be available in the country of tax residence as per DTAA.
Effect of foreign currency fluctuation will be available in calculation of capital gains tax (Sec.48).
| Type of Income | Rate of tax in India | Rate of tax in country of tax residency | Short term capital gains on sale of Unlisted Stocks (When holding period is less than 24 months). | Slab rates of income tax | As per the rates of tax in respective country |
|---|---|---|
| Long term capital gains on sale of Unlisted Stocks (When holding period is more than 24 months). | 10% (Without indexation benefit) | As per the rates of tax in respective country |
| Dividend from Unlisted Stocks. | 20% (Sec.115A) | As per the rates of tax in respective country |
