SELLING OF UNLISTED SHARES

Summary

Common people and investors often have this question in their mind of where to sell their unlisted shares. Whether you are a hardcore investor, an employee or a commoner just curious about the whole process of buying and selling unlisted shares, you have come to the right page. Here, we will discuss the liquidity of unlisted shares, where to sell unlisted shares, how to sell these shares, what is the best time to sell unlisted shares and more.

Are Unlisted Shares Liquid?

Yes, unlisted shares are liquid but as compared to listed shares the liquidity is lower as they are not listed on the stock exchange in India. The liquidity of a share is described as the frequency at which a share can be traded. Since not everyone knows about the unlisted market, the number of investors trading in these shares is comparatively low making it less liquid.

Where To Sell These Shares?

Buying and selling of unlisted shares take place on the over-the-counter market, thus people are not actually aware of the procedure involved in it and whom to turn to for the sale of unlisted shares.

Trading in listed shares is comparatively easier as compared to unlisted shares as it is listed on the stock exchange. In an unlisted market, you can sell your shares directly or via brokers. It is important to be very careful of who you choose as a broker or dealer to sell your shares as not every broker is genuine. There are portals like Sharescart that can help you in this matter. At Sharescart, you can find ready buyers to sell your shares.

Best Time To Sell Unlisted Shares

There is always a best time to buy and sell shares depending upon the market situation. The following are a few factors that can be considered ideal if you want to sell your unlisted shares:

• Financial Reports Of The Company - It is crucial to follow the financial reports of the company to figure out the right time to sell its shares. By following the reports you can evaluate if the company is profitable or not and based on that a decision can be made.
• Triggering Company Events - A company goes through various stages, it can be good, and it can be bad. A person who has invested in certain companies' shares should keep an eye out for triggering company events which they think might change the course for bad. Anticipation and forseeing future events based on the current situation will give you a proper idea of when to sell your unlisted shares.
• Valuation And Price - Before selling your unlisted shares, it is essential to know the market valuation of the shares. The valuation of a share is dependent on the price to earning ratio. It is best if you sell the shares when it is overpriced.

How to Sell Unlisted Shares?

Unlisted shares, though it follows the same procedure, they have a few extra steps involved. It becomes difficult to sell unlisted shares if one doesn’t know the proper mechanism or procedure involved. The first and foremost step is to choose a reliable and trustworthy dealer or broker that deals in unlisted shares. There are various platforms that help you in the selling of unlisted shares such as Sharescart.com.

The following are the steps involved in the sale of unlisted shares through Sharescart.com:

Step 1:  The second step is to give certain details about the shares that need to be sold such as the company name, the number of shares you want to sell, the price at which you want to sell etc. Step 2:  At Sharescart, we will find a suitable buyer for you according to your requirements and if you accept the trade we will move on to the transfer and the payment aspect of the trade.

Step 3:  The Sharescart representative will provide you with the Demat account details to transfer your shares. They will also notify you about the additional details required from your end before the transfer of shares such as client master copy, delivery instruction slip, and more.

Step 4:  Once the transfer is complete, the payment would be credited to your bank account within 24 hours, depending on the holidays.

For the transfer of shares, you need to first fill out a Delivery Instruction Slip (DIS). DIS is a document that acts as an authorization slip that facilitates the debit of securities by the depository participant (DP) into their account. An authorization from the seller is crucial for the transfer of shares.

The DIS document has various elements such as Client ID, Client Name, Date of submission, ISIN number, Security name, Quantity, Consideration amount, Reason for transfer and Date of execution. It is crucial to cross-check each and every detail before putting in the ISIN number so that it does not get rejected.

Closing

Buying and selling of unlisted shares is not that difficult when you know the mechanism behind it. With Sharescart, you don't need to worry about anything. Sharescart helps find a suitable buyer for your shares and if you are happy with the find we will move forward with the trade. We help make your experience with us as joyful and hassle-free as possible.Our expert team will help you clear any doubt that you may have and assist you in every step of the process.