Frequently Asked Questions

What is pre-IPO/Unlisted share?

It is the stage before the company is listed on a stock exchange. Pre-IPO helps in the purchase and sale of private equity shares. It includes the companies like startups, growable companies, and upcoming IPO. Unlisted shares include listing, stopped trading, delisting, and liquidation phase. Shares may be delisted if they are losing money and are not being traded in the stock market.

What are Demat shares?

Dematerialization rules were implemented in 1992, requiring companies to convert their physical shares to Demat form. The CA will issue physical shares at the time of company formation; it is up to the company whether they want to keep their shares in physical or electronic form. Companies can obtain dematerialization services from NSDL and CDSL for a fee.

What is the source of unlisted shares?

Employees (ESOP), Accredited investors, venture capital, private equity, Alternative investment Funds.