How to Buy Unlisted Shares in India — The Complete Process

Whichever specific unlisted company you're considering, the underlying buying mechanics are largely the same. Here's the full process, plus what actually separates a trustworthy broker from a risky one.

Step 1: Get a Demat Account First

If you don't already have one from listed-share investing, you'll need a standard demat account with any depository participant (DP) — banks and brokers both offer these. Unlisted shares are transferred into this same account, just like listed holdings.

Step 2: Choose a Broker or Platform Carefully

This is the step where quality varies the most. Look specifically for:

• Clear, upfront disclaimers that they are not a SEBI-recognised exchange for these OTC trades — legitimate platforms say this plainly rather than implying they're an exchange
• A verifiable track record and physical/registered business presence, not just a website
• Transparent, bank-only payment processes — any platform suggesting cash transactions is a red flag
• Willingness to explain lock-in periods, lot sizes, and their quote methodology clearly when asked, rather than pushing urgency

Step 3: Complete KYC

Typically required: PAN card copy, a cancelled cheque (or bank proof) from the account you'll pay from, and a Client Master Report (CMR) from your existing demat account, which confirms your demat details for the share transfer.

Step 4: Request a Quote and Confirm Lot Size

Unlisted shares are usually traded in defined lots (commonly ranging from 50 to a few hundred shares depending on the company and platform), not arbitrary quantities. Get the quote in writing/on-platform before proceeding, and — given how much prices vary across sources — check at least one other platform's quote for the same stock as a sanity check.

Step 5: Transfer Funds

Payment is made via bank transfer — RTGS, NEFT, or IMPS — from the same account whose details you provided during KYC. Reputable platforms are explicit that cash deposits aren't accepted, partly for your protection and partly for regulatory compliance (source-of-funds traceability).

Step 6: Receive Shares in Your Demat Account

Once payment is confirmed, shares are transferred to your demat account via a Delivery Instruction Slip (DIS) process from the seller's side — typically within 24-48 hours, though this can vary by broker.

Step 7: Understand Any Lock-In

If your shares came from a pre-IPO placement round (rather than a general secondary-market purchase), a lock-in period often applies — commonly around 6 months from any eventual listing date, though the specific terms depend on how the shares were originally issued. Confirm this explicitly for your specific purchase; don't assume it doesn't apply.

A Compact Checklist