Yes, buying and selling unlisted shares and pre-IPO shares in India is completely legal and valid. These transactions are conducted through the secondary market and regulated under applicable laws.

Buying unlisted shares is a simple process. Once the price and quantity are finalized, you transfer the funds to the seller’s bank account. After payment confirmation, the shares are credited to your demat account either the same day or before the end of the next working day.

Generally, no. The transactions typically happen between existing shareholders (like employees, early investors, etc.) and buyers. The company itself is usually not directly involved in secondary market transactions.

Shares are usually credited on the same day the payment is made, or by the end of the next working day, depending on the transaction time and the clearing process.

The minimum lot size varies depending on market conditions and demand-supply factors. It is advisable to check with your broker or marketplace platform for the current minimum lot size.

The pricing of unlisted shares is influenced by several factors such as supply and demand, last funding round valuation, financial health of the company, industry benchmarks, and recent secondary market transactions.

Before an IPO, there is no restriction on selling unlisted shares. However, once the company gets listed, SEBI mandates a 6-month lock-in period for pre-IPO shareholders categorized as public investors.

To sell unlisted shares, you need to agree on the price and quantity with the buyer. Once agreed, you transfer the shares to the buyer’s demat account, and the payment is typically made within 24 hours or by the next working day.

Yes, like any investment, buying unlisted shares carries risks such as liquidity risk, price volatility, limited information availability, and regulatory risks. Proper due diligence is important before investing.

Investing in unlisted shares can offer high-growth opportunities, early entry into promising companies before IPO, potential for significant capital appreciation, and portfolio diversification.