Why "Where You Buy" Matters as Much as "What You Buy"
Unlisted shares can be a genuine wealth builder, but the market is less standardised than the listed one. Unregulated "grey market" intermediaries, inflated quotes, and unclear settlement are the most common ways investors get hurt, far more often than the underlying companies themselves.
Five Checks Before You Transfer a Rupee
- Verify the price: ask for recent, dated transaction prints rather than a single quoted number.
- Confirm the counterparty: understand who is selling, and through which SEBI-registered intermediary.
- Insist on a share transfer agreement: a written contract protects both sides.
- Check the demat path: shares should be credited to your own demat account, typically within T+2.
- Understand the lock-in: some pre-IPO shares carry a post-listing lock-in that affects when you can sell.
How Settlement Actually Works
In a clean transaction you complete KYC, agree a price, sign the transfer agreement, transfer funds, and receive shares into your demat account. If anyone asks you to pay before the process is documented, treat it as a red flag.
Red Flags to Walk Away From
Pressure to act "before the price moves," quotes with no supporting evidence, off-the-record cash settlement, and reluctance to use your own demat account are all reasons to stop. Unlisted investing rewards patience and documentation, not urgency.
In private markets, the paperwork is the protection. If a deal can't survive proper documentation, it isn't a deal worth doing. Safal Capital Research