I have some shares of Gayatri Highways, which has now been unlisted. How can I sell these shares?Vikash Jain, Co-founder, Share Samadhan:
When a company gets unlisted, it has to provide the opportunity to its shareholders to exit at a given price and a time frame for doing so. If you have not sold your shares during this exit period, you may check in the offline market, where
unlisted shares are sold. There are many players in the market, who provide trading facility in unlisted shares through off-market transfers. Here, the sale does not take place in the stock exchange, but you transfer the shares through a delivery instruction slip (DIS) in the offline mode. So you will have to consult the entities dealing in unlisted shares to sell your shares. If these are not being traded in the unlisted market as well, there is no option but to hold them till the shares are listed again, if at all, or are traded in the offline market. The good news, however, is that the company is still active.
I have taken a two-year sabbatical from work to travel and pursue my hobbies. Last year, my income was Rs 5.1 lakh from mutual fund redemptions, all of which were long-term holdings. The long-term capital gain was around Rs 2 lakh. Will there be any tax liability for this year and how will tax be calculated?Shubham Agrawal, Senior Taxation Adviser, TaxFile:
The mutual fund redemption of `5.1 lakh is not your income, but sale proceeds from your investment. It does not factor in the investment cost. Verify the exact capital gain from the report provided by your broker or investment platform. The taxability of equity-oriented
mutual funds is at the rate of 10%, with applicable surcharge and cess. Mutual funds qualify as equity-oriented if more than 65% is allocated to equity, otherwise it is considered a debt fund. If the redemption is of a debt fund, the capital gain will be taxed at your slab rate. Since your gain is below the basic exemption limit of Rs 2.5 lakh, you will not have to pay tax. However, you should file your returns, disclosing all transaction details.
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FAQs
Here, the sale does not take place in the stock exchange, but you transfer the shares through a delivery instruction slip (DIS) in the offline mode. So you will have to consult the entities dealing in unlisted shares to sell your shares.
How do I sell my unlisted shares? ›
All you need to do is approach a trustworthy wealth manager, investment bank, or broker. They will introduce you to the best-unlisted companies in India and facilitate buying and selling of unlisted shares. The dealers and brokers also connect you with the promoters of the companies via private placements.
What is the process of unlisted shares? ›
Steps to buy unlisted shares:
Complete the KYC with the broker with PAN, Aadhar, Cancelled cheque copy and Demat Client Master List. Place an order for the desired shares at an agreed price. Transfer the amount to the account specified by the broker/dealer.
What is the process of selling shares? ›
Filling out the trade ticket is a quick process: You'll select sell, plug in the symbol of the stock, the number of shares, your order type (and limit or stop price, if applicable) and what's called the “time in force” or order expiration: essentially, how long the order should remain open.
How do I sell physical shares of an unlisted company? ›
2. Raise a Request for Dematerialization of Shares
- Step 1: Contact your DP for a Dematerialization Request Form (DRF).
- Step 2: Fill up the DRF with all the required details and put your signature. ...
- Step 3: Your DP will process your request after receiving the DRF along with the surrendered physical share certificates.
Yes, NSE unlisted shares are credited to your demat account. 2) What happens after NSE unlisted shares are listed? After Nse shares are listed, shares are linked to the market and take live from the exchange. You can trade in NSE Shares after 6 months of lockin period after IPO.
How are unlisted shares valued? ›
The Present Value Method, also known as the Discounted Cash Flow Method, and the Book Value Method are the two most used techniques for valuing a company's unlisted shares. The other two are hardly ever utilised in comparison to these two. For the investor, the value of unlisted shares is quite important.
What are the disadvantages of unlisted shares? ›
CONS
- Higher Risk: Investing in unlisted shares carries higher risk compared to publicly traded stocks. ...
- Valuation:One of the common risks in the unlisted market is the selling of unlisted shares at very high prices. ...
- important to be careful when buying unlisted shares and make sure that you're getting a fair price.
Long-Term Capital Gain - In unlisted shares, the taxation for long-term capital gains (LTCG) is calculated if the holding period is more than 24 months. The tax rate for LTCG is 20% with indexation benefits as compared to listed shares that have a LTCG holding period of more than 12 months.
What is the holding period for unlisted shares? ›
However, in case of unlisted shares, the holding period is 24 months after which LTCG tax comes into effect.
How to sell shares. Most people looking to sell shares will do so via a brokerage, like IG or Hargreaves Lansdown.
How long does it take to process selling shares? ›
The broker delivers the shares to the exchange on Day 02 or T+1 Day, and you also receive money in your banking account after all fees have been deducted on the same day.
Can I sell my shares immediately? ›
To sell these stocks, you will have to wait till they get delivered to your Demat account as per the SEBI regulation which takes 1 trading day, from the date you place a successful buy order.
How are the shares of an unlisted company bought and sold? ›
Investors can buy the share directly from the pre-IPO listed marketplace. It is the place where the employers and private brokers make their stake available at the better price. However, to buy the unlisted shares you also need a trusted broker who has a good track record.
How do I sell shares in a privately owned company? ›
How to Sell Privately Held Stocks
- Sell the shares back to the company. The easiest way to sell shares of privately held stock is to get the company that issued them to buy them back. ...
- Sell the shares to another investor. ...
- Sell the shares on a private-securities market. ...
- Get your company to do an IPO.
UnlistedZone is one of India's fastest-growing brokers for unlisted shares. One of the key advantages offered by the platform is the ability to track the historical price movement of unlisted shares. This provides investors with vital insights into the performance of shares before making investment decisions.
How to transfer unlisted shares online? ›
Documents Required For Transfer Of Shares
- KYC Documentation – Aadhaar And Pan Card. You will need to show/submit these documents for initial KYC verification for unlisted stock trading.
- Demat Account/Client Master List. ...
- Crossed/Cancelled Bank Cheque.
