IN TRANSPARENCY WE TRUST
Introducing market depth for unlisted Shares in India, where you can see real-time list of open orders.
That will enable you to BUY or SELL unlisted Shares directly from counter party.
LIVE Exchange in Unlisted Share Market?
OTCSTOX
Our platform OTCSTOX, provides a new way to trade live in the least explored unlisted share market in India.
- Transparent & Live Market Depth
- More Liquidity
- Lower Bid/Ask Spread
- Effective Price Discovery
- Easy to Access
LIVE MARKET DEPTH
Access to Live List of Open Buy & Sell Orders
SAFETY
Robust Settlement Process Protects Buyers & Sellers
MORE LIQUIDITY
Direct Connection Between Traders leads to More Liquidity
NO MIN LOT SIZE
No Restriction on Lot Size & Min Transaction Value from Our Side
MARKET HOURS
Mon-Sat
9:00 AM to 6:00 PM
LOWER CHARGES
Only 0.75% or ₹200, Whichever is Higher
Platform Glimpse
- All
- Market Depth
- Place Order
- Orders
- Modify Order
Market Depth
Place Buy Order
Place Sell Order
Orders
Modify Order
Cancel Order
HOW IT WORKS
1) Go to TRADE NOW
&
Select the Script
2) Place Buy or Sell order in Market Hours
3) Once your order is matched, we will confirm the deal from both parties over the phone before initiating the settlement process.
4) Once the deal is locked, we will send the invoice to buyer. Buyer will have to make payment to company’s account as per the invoice to initiate the settlement.
5) Once we receive the payment from buyer, We will intimate the seller to transfer the shares into company’s account as per deal agreement.
6) Once seller transfers the agreed quantity of shares, We will settle the trade. (By transferring shares to buyer and funds to seller.)
Listed vs Unlisted
Listed and unlisted shares (OTC Stocks) allow investors to earn potentially return on investments. Listed shares are usually traded on an exchange platform like NSE and BSE, whereas unlisted share trading generally takes place in an over-the-counter (OTC) market in India.
Due to substantial transparency in exchange markets a listed share market is often viewed to be of higher quality. More specifically, to be publicly listed the shares needs to meet a variety of criteria decided by the market regulator SEBI.
Companies quoted on unlisted share market generally do not have to meet any standards.
Another main difference between listed and unlisted shares is liquidity risk. Due to the nature of private and public markets, these two types of shares are subject to different levels of liquidity risk.
Exchange-traded markets are accessible for a wider range of investors including individual and institution investors and due to the larger number of traders and low, efficient transaction processes, liquidity risk in exchange markets is considered to be small.
In contrast, the unlisted wholesale share market is primarily dominated by institutional investors (and a few significant private investors) and the transactions among them (often in large volumes) are generally slower and cannot be made until two parties reach full agreement, which may include other terms than just price and volume. For this reason, securities in unlisted share market often offer a premium to investors for the inconvenience and difficulties to exit the market (the “liquidity premium”).
Overall, even though listed and unlisted share market possess different features and risk profiles, the return on both are still driven by multiple factors (not only limited to liquidity and perceived quality) including fundamental credit risk, technical supply-demand conditions and the wider macroeconomic environment.
DISCOUNT
What is illiquidity discount in Unlisted shares?
When an investor decides to sell unlisted shares, he will incur some trading costs. These costs are often referred to as “the cost of illiquidity” and consist of four components;
- Bid-Ask spread
- Price impact when buying or selling
- Opportunity costs
- Commission
In general, the trading costs will be low for frequently traded assets and high for infrequently traded unlisted shares because the bid-ask spread tends to narrow for frequently traded OTC shares, for which there are many buyers and sellers.
The illiquidity discount is, all other factors being equal, higher for unlisted equity than for traded listed equity due to differences in trading costs.
Why you should not worry about illiquidity in unlisted share?
"OTCSTOX"
Features- Online platform for placing order
- Fast & Secure transaction
- Lowest commission
Why some companies remain unlisted?
There are mainly three reasons behind company is not listed on stock exchanges.- Company failed to meet regulatory requirements (Delisted).
- Smaller company doesn't meet criteria to get listed (New small companies).
- Company waiting for right opportunity for capital raising (Potential IPO candidate).
Why should I invest in unlisted shares?
- Portfolio Diversification.
- Potential IPO listing gain.
- Grab great companies at deep discount in early stage of growth cycle.
- Valuation based less on market sentiments and more on estimated capital value.
Frequently asked questions
-
What is OTCSTOX?
- OTCSTOX is a platform for trading unlisted shares in India, introduced by OTC Capital Services Private Limited. Our goal is to make OTC market more transparent and liquid.
- The main aim of OTCSTOX is to enable the process of determining the price of an unlisted stocks in the live and open marketplace through the interactions of buyers and sellers in transparent way and in secure environment.
-
Why OTCSTOX?
- Live market depth
- First in India, fixed commission-based OTC platform
- Faster settlement process
-
How to buy unlisted shares on this platform?
- Place buy order as per your requirements.
- Once we find best match for you, we will finalize the deal from both parties over the phone.
- After confirming the deal, we will intimate you via invoice to transfer the funds.
- After receiving the shares from seller, we will release the shares into your Demat account ASAP.
- For any reason, seller is not able to transfer the shares, we will refund full payment to you.
-
How to sell unlisted shares on this platform?
- Place sell order as per your requirements.
- Once we find best match for you, we will finalize the deal from both parties over the phone.
- After confirming the deal, we will intimate buyer to transfer the money to Company’s account.
- Once we receive the money from buyer, we will inform you to initiate the share transfer.
- After receiving the shares from you, we will release the funds into your bank account ASAP.
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What if I want to cancel / modify the order?
- Please go to orders section in OTCSTOX.
- Select and modify the order as you wish.
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What if the seller is not able to transfer the shares for any reason?
- Your money will be safe with us until the settlement process completes.
- By any chance the deal is cancelled, we will refund full money back to buyer’s account without any charges.
-
What about seller’s securities’ protection
- We will intimate to seller to transfer the shares, only after we receive money from buyer.
- Once we receive the shares in our Demat account, we will release the funds into sellers account on the same day. So that the deal will be 100% secure.
-
What is minimum lot size?
- There is no restriction on lot size and minimum transaction value from our side.
- Lot size depends on individual buyers / sellers (Counter party).
-
What to consider while dealing in Unlisted Shares?
- 1 Year lock-in period after IPO
- Limited information availability of companies in unlisted share market.
- Always track recent developments in this space. Track NEWS
Most Active Scripts
Don't put all your eggs in one basket.
Contact
We are happy to help you. Kindly reach out to us any time to manage your order, raise concern against your order or to place a new order. Please call us for more information on any other queries and concerns.