Unlisted Shares in India: What Smart Investors Should Know in 2026
New Delhi [India], February 09: The rising Indian capital markets mean that investors look beyond buying equity shares on public exchanges like the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE).
In 2026, more informed investors look into unlisted shares in India, a market segment that has been existing for decades, operates outside of conventional stock exchanges, but continues to draw in structural long-term investment.
Unlisted shares are equity shares of a company that are not listed on recognized stock exchanges, like the NSE or the BSE. Even the NSE unlisted shares are traded privately.
There are private firms, subsidiaries of listed companies, and those that are still to go public. This market has been in existence for many years, but in the recent past, unlisted shares have become more structured as a market.
Why Unlisted Shares Are Gaining Attention
Perhaps the most important reason for the increase in unlisted shares is the companies themselves. More and more firms are remaining private and are not publicly listed for a long time, while scaling up operations.
This dynamic shifts more and more early-stage investment opportunities out of the listed markets and into unlisted shares.
Investors are also starting to look for unlisted shares as research intensive investment opportunities instead of market speculation.
Market researches mention interest in companies having strong operational capacity, brand recognition, or having a strategic role in their respective industries.
How the Unlisted Share Market Works
Unlisted shares are not listed or traded on an exchange like listed stocks. They are traded through off-market transfers using depository systems that connect buyers and sellers directly.
Some characteristics of unlisted shares are:
- They do not have an exchange with daily price discovery.
- Company fundamentals, demand, and supply determine their price.
- The transfer of shares occurs through Demat accounts.
- They have longer holding periods than listed shares.
Unlisted shares do not have an exchange; however, the process is regulated and legal when conducted using proper documentation and depository systems.
How to Buy Unlisted Shares
Investors of unlisted shares need to have a Demat account, because shares are held electronically. Usually, investors who want to buy unlisted shares identify a target company and then negotiate a transaction price.
After that, the KYC documentation is completed, and an off-market transfer is made.
A new class of digital service providers has emerged to simplify and standardize documentation for users, while providing data about individual companies in this market.
Delisted Stocks is an example of a service provider that focuses on unlisted and pre-IPO shares, providing access to and information about these assets.
Liquidity and Holding Period Considerations
Liquidity is the main difference between listed and unlisted shares.
Listed stocks can be bought and sold anytime during the trading hours of the exchange. On the other hand, unlisted shares involve
- Availability of a counterparty
- Price negotiations
- Time-consuming settlements
This is why unlisted shares are generally suitable for investors with a longer investment outlook.
The Tax Treatment of Unlisted Shares
With regard to taxation, unlisted shares and listed equities are treated distinctly. Capital gains taxation is determined by a time-based test, where longer holding time usually translates to long-term capital gains.
Taxation laws are prone to change and are case-specific, so tax professionals urge investors to stay on top of current policies.
Growing Preference for Structured Platforms
With the rise of the unlisted markets, investors are becoming more discerning about where they would like to conduct their transactions.
Market players have observed a more noticeable trend moving from informal channels to more developed channels with a more defined structure, documentation, and access to the more detailed information of the offered business.
This is more transparent and increased knowledge of the investors.
Apart from pre-IPO shares, Delisted Stocks is focused on this new market trend.
Who Typically Invests in Unlisted Shares
Unlisted shares are typically sought after by:
- Long-term investors
- People who have basic knowledge of business
- Investors who want to diversify into markets that are not listed
Outlook for Unlisted Shares in 2026
Market analysts predict that the unlisted share market will continue to show activity as more companies postpone going public and investors look for new equity alternatives.
The next phase of development in this field will likely feature improved awareness, access to data, and more organized structures for completing transactions.
Investors will likely continue to focus on due diligence and patience in 2026, and, in the absence of rapid returns, will steer the emphasis toward clearer objectives.
Disclaimer: Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided.
