Calculating Capital Gain Tax on Unlisted Shares

Unlisted shares are securities or financial instruments that are not listed in the stock market. Since the stock market is well regulated by the SEBI, and market pricing and disclosures are transparent, the risk in investing is relatively lower. This transparency and regulation are not available in the unlisted space We are mindful of the advantages of putting capital into stocks - it gives an extraordinary potential gain whenever done well. 

Reducing potential risk

Unlisted securities provide different risk factors and can correspond to somebody who is putting capital into listed shares. Investing in unlisted companies can be a decent means to expand the portfolio. Unlisted stocks offer better return potential when contrasted with that listed shares. 

Low liquidity prompting undervaluation

Most unlisted stocks of unlisted private companies are illiquid, they can draw in just a few participants who will remain contribute to a more diversified portfolio. These ventures have a lower interest rate and few members who are part of it, so the valuations are generally lower. An underestimated stock offers numerous opportunities for investment.

How much to invest in unlisted shares?

Investors should only open up to unlisted stocks to the extent that they complement their current portfolio. Overdoing it can significantly increase the gamble. An individual should assess their own tolerance for risk, determine the venture's potential risk, and then choose one in line with their profile. 


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