According to Gurmeet Chadha's interview with NDTV Profit, retail investors can access unlisted shares through two primary routes. The first involves Category II and III Alternative Investment Funds (AIFs), which specifically invest in pre-IPO opportunities but typically require a minimum investment of ₹1 crore. The second route involves specialized platforms and brokerage networks that facilitate unlisted share transactions and allow investors to track prices and purchase shares in companies potentially going public.
As reported by NDTV Profit, Chadha highlighted significant risks in the unlisted market, noting that price discovery is often inefficient and heavily sentiment-driven. He explained that sometimes price discovery is more a function of euphoria around the stock rather than fundamental value. The expert warned that unlike listed shares, unlisted investments can remain illiquid for years, with companies such as NSE and OYO experiencing repeated IPO delays. Investors must be prepared for extended holding periods and cannot approach these investments with a short-term mindset.
According to the interview, liquidity remains a major issue in the unlisted market, with some companies like NSE or Chennai Super Kings having relatively active demand while smaller companies can become difficult to exit without taking steep discounts. Chadha emphasized that investors should deal only with reputed, institutional brokers and insist on near-instant transfer mechanisms. The settlement process involves paying first and then receiving shares in demat accounts with a bit of lag.
As reported by NDTV Profit, Chadha strongly advised retail investors against chasing fashionable themes such as AI, semiconductors or clean energy in the unlisted space, noting that there are a lot of frauds in the market. His strategy recommendations include investing only in businesses and sectors genuinely understood, avoiding concentration risks, and limiting exposure to unlisted shares to a small portion of an overall portfolio. He warned against chasing momentum and euphoria, stating that chances are not only will investors lose money but could face a permanent lock-in of capital.
