The growing interest in the unlisted sector has led to several smaller businesses using creative strategies to reach small investors. Sensex and Nifty are examples of benchmarks that follow the trend of the unlisted market, and low-ticket investment value is another.
Notable companies in the index include Tata Capital, NSE India, Boat, Capgemini, and PharmEasy. To avoid undue concentration and encourage diversification, the basket’s stock weights are limited to 10%.
Another example of this type of index is the Sharecart Private Market Index (SPMI), which began at 1,000 in 2022 and is currently at 1,592. The site allows users to trade stocks including Bira, Oyo, Chennai Super Kings, and NSDL.
A recent report claims that the monthly trading volumes of unlisted shares increased from $50–60 million in 2023 to $300 million in 2024, a six-fold increase. However, because the unlisted space is unregulated, individuals looking to earn a quick profit should be aware of the potential hazards.
“Such activities (transaction in unlisted shares) violate Securities Contract (Regulation) Act, 1956 and SEBI Act, 1992, which are, among other laws designed to regulate and protect the interest of investors in securities markets,” stated market watchdog SEBI in December. SEBI has been actively monitoring the sector.
To attract more retail clients, these firms are also providing lower ticket-sized investments in contrast to some of the more well-known brokerages that provide unlisted services. For unlisted shares, HDFC Securities demands a minimum investment of Rs 25 lakh, Axis Direct Rs 5 lakh, and ICICI Rs 50,000. It is significantly lower for smaller businesses. Investing in a single share of some firms, such as CSK, which was trading at Rs 197 on Friday, is permitted by Incred Money.
The pre-IPO area may also be something to keep an eye on, given the market’s continued strong pipeline of IPOs scheduled for the new year.
