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Interest in unlisted shares like NSE is rising, especially among retail investors looking for early entry opportunities.
While returns can be high, risks like low liquidity make careful research essential. (Representative Image)
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 Though the PIL was withdrawn, it highlighted potential risks linked to these quasi-exchanges.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.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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