Investing in Listed and Unlisted Shares: A Practical Guide
Financial companies in India commonly hold two kinds of equity investments: quoted (listed) shares that trade on stock exchanges, and unquoted (unlisted) shares of private or non-listed companies. Each category behaves differently in terms of liquidity, valuation and risk.
Quoted shares
Quoted shares are listed on exchanges such as BSE or NSE. Their prices are discovered continuously in the market, they can be bought or sold in seconds through a broker, and their valuation is transparent. The trade-off is volatility: market sentiment moves prices daily, sometimes far from underlying value.
Unquoted shares
Unquoted shares belong to companies without an exchange listing. Transactions happen privately, pricing requires negotiation or independent valuation, and selling can take weeks or months. In exchange for this illiquidity, investors may gain access to businesses at earlier, potentially cheaper stages.
Comparing the two
| Criterion | Quoted shares | Unquoted shares |
|---|---|---|
| Liquidity | High — sell any trading day | Low — private sale only |
| Price discovery | Continuous, transparent | Negotiated, periodic valuation |
| Information | Mandatory disclosures | Limited public data |
| Volatility | High, daily swings | Low day-to-day, event-driven |
| Entry size | Small lots possible | Often larger commitments |
Short-term versus long-term positions
A short-term investment approach seeks gains from price movements over weeks or months and demands constant attention. Long-term investing holds positions for years, relying on business growth and compounding rather than market timing.
Investment companies typically blend both: a long-term core portfolio in businesses they understand well, plus shorter-term positions that exploit market opportunities.
How this relates to Shree Securities
Shree Securities Limited makes both long-term and short-term investments in quoted as well as unquoted shares as part of its NBFC business, combining portfolio investment with lending activity from its Kolkata base.