Most investors are familiar with buying shares through stock exchanges like NSE and BSE. However, not every company's shares are available on these exchanges. Some companies remain unlisted, and their shares are known as unlisted shares.
These shares have become increasingly popular as they give investors an opportunity to invest in promising companies before they are publicly listed.
What Are Unlisted Shares?
Unlisted shares are the shares of a company that are not listed or traded on stock exchanges like NSE or BSE.
Unlike listed shares, you cannot buy or sell unlisted shares through trading platforms such as Motilal Oswal, Zerodha, Groww, Upstox, Angel One, or ICICI Direct.
Instead, they are bought and sold privately through registered brokers or intermediaries who connect buyers and sellers.
Why Do Companies Remain Unlisted?
A company may choose to stay unlisted for several reasons:
- It is still in its growth stage.
- It does not require funds from the public.
- The promoters want to retain greater ownership and control.
- The company is preparing for a future IPO.
Being unlisted does not mean a company is small or unsuccessful. Many well-known companies have remained unlisted for years before going public.
