January 29, 2017

Trading in Unlisted Shares in India


With every day that passes by, people look for new options to invest their money and earn some returns. After the regular share trading and commodity trading in India, one thing that is surely making heads turn these days amongst the investors is the trading in unlisted shares. This sort of trading is popularly done across all the trading markets in the world. To begin understanding how the trading of unlisted shares is done in India, it is important to initially understand what exactly the unlisted shares are.
Going by the basic name, when you trade the shares of those companies that are not listed on any of the trading exchanges like the NSE or the BSE, those shares are known as the unlisted shares. The trading done in these shares is known as unlisted share trading. This trading is done across the over the counter markets and considering this, there are some exchanges that call these shares the OTC securities as well.
In India, you need to fulfil a certain set of requirements to get your company registered on the trading exchanges. In cases when the companies find themselves incapable of fulfilling these requirements, their shares are to be considered as unlisted shares and thus the trading cannot be done through these exchanges.
Since there is always some amount of risk trading in these shares, it is very important that you make a purchase of these shares only through the reliable sources. It is possible that the company you want to trade in is offering you the trade services of unlisted shares but it doesn’t itself have any sort of registration or license to do the same.
Although we’ve used the term over the counter above, but it is important to clearly understand what it means. Practically there is a lot of difference between how the NSE and BSE work in comparison to these counters. These counters or trading mediums are not bound by any sort of regulations that are as stringent as the regular rules meant for NSE and BSE. Moreover, the amount of risk that can be taken in the regular style of trading has all the transparency and thus there is the least bit of fraud that you can do. In contrast to this, the amount of liquidity is low for unlisted trading and therefore the number of people taking the risks automatically becomes huge.
Considering the benefits that fraudulent people can make from the unlisted share trading in India, there are several measures that are being taken for such companies and traders to keep them under the eye of the regulatory boards and organizations. There are constant improvements in the style of trading here and work is still being done to make the entire trading system more transparent and bring them under the tax radar as well.

So now that you know the basics associated with the unlisted share trading, find a company that offers you the best advisory services in this context and proceed to make your gains.


 Mahesh Kumar

 Stock marketing executive at Alice Blue.

Alice Blue was founded with the underlying philosophy to serve Indian Traders and Investors by providing world class broking service at very low cost. Alice Blue acquired a name of trust through Commodity Broking and later forayed into equity and currency segments.

Dedicated customer service, transparency to the core, pure professionalism with human touch and swiftness in work are the mantras we recite every day. Our mission is to provide world class broking service to our clients and stakeholders with optimum returns at minimal cost.

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