There is no restriction on buying Unlisted shares if the client is a resident of India.
- Since shares of unlisted companies are not freely traded on stock exchanges, there is no fair or exact market price. There is no formal market for unlisted equities. Unlisted shares enter trading is usually done when there is diluted equity for sale by existing shareholders, promoters or employees of the company
- Unlisted shares can be bought through intermediaries and platforms who specialize in sourcing and placement of unlisted shares and can facilitate the trade. Intermediaries and platforms buy shares from employees i.e., employee stock options (ESOP), existing investors and offers new investors who are keen to invest.
As per India's market regulator's rules, all pre-IPO shares are locked in for six months from the date of listing. It means you cannot sell stocks before six months from the date of listing. In case of unlisted securities, if the stock is sold within 24 months, it's considered short term.