In the private markets, investors acquire shares of a company that is still private and is not yet listed in the public markets or on the Stock Exchanges.
It takes about 24-48 business hours for the shares to reflect in the associated demat account post successful transaction. Share transfer procedure does not take place on Saturdays and Sundays as the depositories - CDSL and NSDL, do not work on weekends.
SEBI has mandated a lock In Period of 6 months for mainboard IPO's & 1 year for SME IPO's, from the day when the company gets listed on the exchange. Post lock-in period, you can either wish to retain the shares or sell in the Public Markets.
Users can sell their shares in the following ways:
* Private Network: They can sell it to any of their close friends/family members.
* Buyback: If the company is a cash-rich or, for whatever reason, decides to issue a buyback offer, the equity holder can exercise this option and sell the shares back to the company.
* M&A: If a company decides to go for an M&A, the acquiring company purchases the shares of the privately-owned company. Users can sell their shares in the event of this happening.
* After Listing: If the company decides to go public, the Investors can sell their shares at the prevailing market rate on exchange. Investors can’t opt for this until their lock-in period is over.
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The material presented in this advertisement is for informational purposes only and should not be construed as investment advice or investment availability. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular unlisted share, security, strategy, or investment product. Investing in the private market and securities involves risks, including the potential loss of money, and past performance does not guarantee future results. Market trends, data interpretations, graph projections are provided for informational and illustrative purposes and may not reflect actual future performance. Nothing on this website should be construed as personalized investment advice or should not be treated as legal, financial, or any other form of advice. Blooming Stock Dynamics LLP is not liable for financial or any other form of loss incurred by the user or any affiliated party based on information provided herein.
Investments are subject to market risks, read all scheme related documents carefully.
