There is no restriction on buying Unlisted shares if the client is resident of India. Unlisted shares can be bought through intermediaries and platforms who specialize in sourcing and placement of unlisted shares and can facilitate the trade. Intermediaries and platforms buy shares from employees i.e., employee stock options (ESOP), existing investors and offers new investors who are keen to invest.

Income/loss from Sale of equity shares is covered under the head ‘Capital Gains’ Under the head ‘Capital Gains’, income is further classified into :

(i) Long term capital gains, or

(ii) Short term capital gains. Short-term capital gains (STCG) If unlisted equity shares are sold within 24 months of purchase,

the seller may make short term capital gain (STCG) or incur a short-term capital loss (STCL). The seller makes short-term capital gain when shares are sold at a price higher than the purchase price. Short-term capital gains are taxable at Slab rate . Calculation of short-term capital gain = Sale price Less Expenses on Sale Less Purchase price Long-term capital gains (LTCG) If equity shares listed on a stock exchange are sold after 24 months of purchase, the seller may make a long-term capital gain (LTCG) or incur a long-term capital loss (LTCL). Long-term capital gains are taxable at 20% after the benefit of Indexation.

The minimum investment to buy unlisted shares from Unlisted is INR 1,00,000. There is no maximum limit on the amount you can invest.