Step By Step Process of Buying Unlisted Shares
7
easy steps to buy unlisted shares
Requirement of Demat and Trading Account.
First
of all, you require your Demat and trading account to be open to transactions
for the shares. The unlisted market only accepts Demat accounts, not another
authorized Indian system, because an unlisted market is not much reliable
process as its shares are not listed on stock exchange websites.
Choose
the right intermediary.
It is
the most crucial step where your rightly chosen intermediary will be of great
help to invest in at the right place at the right time. They will save your
vital time in finding the right shares and guide you step by step on what to do
in what way.
Stock analysis.
Here is
when your research requires. It is vital to get the stock analysis because the
unlisted market is the game for the long term. Analysis for scope, quantity,
quality, and value is necessary for a great deal.
Healthy Negotiation.
After
finalizing what you are going to take, it's time to get the fair price of the
share. Make sure it is not undervalued or overvalued only because you like it
or dislike it much. Understandably, there are significant fluctuations in this
market, but your thorough understanding can help you get the best value.
Final
order placement.
Finally,
you place the order and get your mind a little unbundled with worries of the
right choice. Now you are buckled with everything you want for your future.
Let's proceed to the next step.
Needed Documents submission.
During
documentation, you need to get ready Aadhar card, bank account, PAN Card, or
any other requirement. This step is very near to the end of the process as you
share your documents only with the person of the dealer you trust and whom deal
you liked the most. Remember, document submission can be the step before your
order placement, depending on the circumstances and regulations of the company
or dealer.
Deal transfers and Payments
Transfer
the value demanded of the share through your bank account and received the
receipt and your share.
The process is entirely based on how much your dealer is reliable.
5 mistakes to avoid when buying unlisted shares
Whether
you are new to the investing field or a newcomer into an unlisted market,
actions must be taken to avoid huge losses. Knowing them beforehand is the best
solution to be aware of and end up with profit rather than unexpected losses.
Let's readout to make sure we are not blocking the capital or bearing the
opportunity cost or undervalued by the top-performers.
1.
Don't blindly go after someone. Research well about the company on your behalf
as an owner. Completely understand what the company does, the value of its
products, the future scope, its background, its growth pace, everything.
2. The
price of the share is determined by its demand. If you find some share at the
very lowest rate, don't think of it as an opportunity for you. However,
consider why other investors did not put in their efforts and increased its
value. Why others devalued, and it is on the lower rate at now. Whatever its circumstances
are or another side of the coin is, does it suit you or not?
3.
Avoid unhealthy practices just because of thinking that it is the unlisted
market.
4.
Invest if you are a long-term thinker. Being into an unlisted market is not the
game for short-term thinkers, as profit only comes when the company's share
grows and increases its value.
5. You
will notice various price fluctuations in the unlisted market. So, it usually
becomes difficult to understand the fair value of that share, so you do your
research to avoid extra costs.
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