Articles

Buffett’s firm to largest DII, all hooked to India’s grey market: Here’s what’s buzzing

Here are some of the names that have kept the grey market abuzz over past few weeks. From the world’s richest investor, Warren Buffet, to the country’s biggest institutional investor, Life Insurance Corporation of India (LIC), all have large stakes in some of these stocks. New Delhi: India’s unlisted market for securities has been buzzing a lot these days among both seasoned investors as well as the novice. From the world’s richest investor, Warren Buffet, to the country’s biggest institutional investor, [...]

December 5, 2019 By Articles Comments Off
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Regulations pertaining to unlisted shares in India

It is important to know the regulations surrounding unlisted securities as an investor. Key aspects that an investor should know about relate to taxation and valuation. Given below are some important pointers that will be helpful. Taxation rules on profits: Profit generated on sale of unlisted shares is accounted as capital gains. Short term capital gain on sale of unlisted securities is currently taxable at 15%. Unlisted shares held for less than 24 months qualify under short-term capital gains tax. [...]

September 21, 2019 By Articles Comments Off
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101 Guide for investing in unlisted shares

Please click on the topics mentioned below that might interest you or you would like to know more about: 5 mistakes to prevent while trading in unlisted shares Advantages of owning unlisted shares Disadvantages of owning unlisted shares Regulations pertaining to unlisted shares in India Tips for investing in unlisted shares What return on investment to expect in unlisted shares

September 21, 2019 By Articles Comments Off
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Disadvantages of investing in unlisted shares

One may be very happy owning unlisted shares and keep counting the benefits but at the same time, one must be aware of the disadvantages of owning unlisted shares. Lack of liquidity: Unlisted shares cannot be very readily converted into cash and need more time to be liquidated. They cannot provide cash flow in emergency situations and often need several days to weeks to liquidate. Higher Taxes: While long-term capital gains taxes in listed securities is zero, when STT is paid, [...]

September 21, 2019 By Articles Comments Off
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Advantages of owning unlisted shares

While there are many reasons why a person might invest in unlisted shares, following are some of the common advantages of owning unlisted shares: High value investments: Since the stocks are not very liquid, they are often either undervalued or overvalued for long periods of time. Thus, if an investor is able to invest when the stock is undervalued, then he/she can gain significant returns on the investment. Peace of mind: Unlike listed equity shares, the prices of unlisted equity shares [...]

September 21, 2019 By Articles Comments Off
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Top 5 mistakes to prevent while trading in unlisted shares

Being a new investor in a different asset class, one needs to be cautious to avoid unnecessary losses. While one may not be able to avoid losses in all situations, it is always better to be aware of mistakes and thus prevent making mistakes that lead to losses. Some important mistakes are highlighted below, we hope our readers will avoid them. Poor fundamental research: The biggest mistake an investor can make is investing in a bad stock without doing [...]

September 17, 2019 By Articles Comments Off
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