Investing in Unlisted Stocks is similar to investing in any other sort of unlisted investment – it comes without the traditional hassles of paperwork and the hassle of contacting the company’s support teams. You are also not bound by the restrictions placed on listed or trading stocks. For instance, shares traded in unlisted companies are not subject to the quarterly red tape that stock on the main BSE (Bombay Stock Exchange) is subjected to. As an investor in an unlisted firm you are afforded all the same advantages – low costs, high liquidity and diversification of risks among others – as you are in any other investment, but you are not required to file returns nor to disclose your investment to the Securities and Exchange Commission.
Don’t Waste Time! 8 Facts Until You Reach Your Unlisted Shares
Unlike stocks on the BSE, buying and selling unlisted shares is not covered under the provisions of the Income Tax Act or the corporate tax laws. This means that the ownership of unlisted shares remains unrecorded in the books of the company concerned and hence it is not liable to be taxed. However, there are certain restrictions imposed on the transfer and sale of such shares through share transactions, one of them being that the dividend paid on such shares will be taxed like ordinary income. It is important to note that such dividends are exempt from the income tax if they are paid only in kind. Click here to find out the way to visit babli investment.
You can buy and sell shares on the Bombay Stock Exchange online using an accredited broker. In case of an unlisted public company, you will need to appoint a financial planner who will help you invest the funds in the best possible manner. An account representative will help you make the necessary purchases and sales and complete the various paper work required for such a transaction. The company must be registered with the SEC (Securities Exchange Commission) before you can buy or sell shares and in general transactions in an unlisted public company you need to be in possession of all the necessary documents and information such as the original stock certificate, registration statement and annual report.