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Summary
Shares from various companies are divided into different different categories based on the company status. Similarly, shares from listed and unlisted companies are known as listed and unlisted shares respectively. These companies are segregated based on their company listing on any of the formal exchanges .In this article you will understand everything that you need to know about unlisted and listed shares.
Listed shares are shares of those companies that are listed on the stock exchange i.e. BSE or NSE and are open for investors in the public. Listed stocks are only for public companies. The shares of listed companies are generally owned by several shareholders. According to Section 2 (52) of the Companies Act 2013, a listed company is one that has any of its securities listed on a recognised stock market. Such businesses must abide by the listing criteria of the relevant stock exchanges.For Example - Tata Consultancy Services, HDFC Bank, Infosys Limited, Reliance Industries Limited etc. These business entities are traded either on the National Stock Exchange or the Bombay Stock Exchange.
Unlisted shares are shares of those companies that haven’t been listed on any formal exchange. These companies can either be privately owned or a public limited. The shares of unlisted companies are generally owned by a few private investors.
Unlisted shares are further divided into three categories:
There are various differences between listed and unlisted shares apart from the listing of securities. Let’s look at them one-by-one and compare listed and unlisted shares taking up a few points of difference such as trading platform, regulatory body, taxation and more.
Since listed companies are registered with the stock exchange of India, their shares are traded on the stock exchange such as the Bombay Stock Exchange or the National Stock Exchange. Since unlisted shares are not listed anywhere they have no such platform. These shares are traded in the over-the-counter market.Trading in Listed and Unlisted shares is legal in India.
While listed shares are regulated by the Securities Exchange Board Of India, there is no proper regulatory body for unlisted stock though it is governed by the companies act. Listed companies follow strict regulations and have no other option than to abide by it whereas in unlisted shares the regulations are not that rigid as compared to listed shares.
The taxation of listed and unlisted shares are based on the two categories: Long-term capital gain and short-term capital gain. Since these shares are different, the tax implications are different as well.
Listed shares are highly liquid as there are a lot of people on the stock exchange ready to trade. The risk element in listed shares is comparatively low but so is the chance to earn exceptional returns. In unlisted shares, the liquidity is a tad lower because of the limited number of investors who invest in long term investments but if you know a trusted trader in unlisted shares like sharescart.com, the liquidity increases. The risk element in unlisted shares is relatively high but even higher are the chances for exceptional returns.
Sharescart.com is a platform that deals in listed and unlisted shares. You won't need to worry about anything with sharescart. Before putting a company up for investment on the platform, sharescart undertakes extensive research on it. Your questions will be answered and you will receive assistance at every stage of the process from the knowledgeable team at sharescart. With sharescart selling and buying of listed and unlisted shares can’t get simpler.
Whether a corporation has any listed securities determines whether it is listed or unlisted. Due to its adherence to regulatory restrictions, investing in listed securities may be less risky than other types of investments. Unlisted businesses, however, might provide excellent rewards at a higher risk. Before making an investment selection, it is a good idea to think about your investing aim.
Sell or Purchase Share (Tentative Price)
Company | Industry | Stock P/E | P/B | Company rating | MCAP (in Cr.) | Current Price |
---|---|---|---|---|---|---|
Pharmeasy | e-Commerce | -2.3 | 2.2 | 5784 | 9 | |
Reliance Retail | Retailing | 141.5 | 23 | 698659 | 1400 | |
Orbis Financial | Finance - Investment | 37.5 | 7.7 | 5295 | 435 |
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