Thread by @financewsharan

Most retail investors think stock market = NSE and BSE.

But there's a parallel universe of unlisted shares that 99% don't know about.

Here's what the middle class needs to know about grey market investing: 🧵

Think about it: wouldn't you have loved to own Zomato stocks before they went public?

You actually can. It's called grey market investing.

The 3 stages every company goes through:

→ Stage 1: Unlisted (Private companies)
→ Stage 2: IPO launch
→ Stage 3: Listed on exchanges

Most enter at Stage 3. Smart money enters at Stage 1.

The brutal reality:

If regular stock investing is matchsticks, grey market is playing with fire.

Real risks:
→ Liquidity Risk: Can't sell on exchanges
→ Huge ticket sizes: ₹20K to several lakhs minimum
→ Lock-in period: 6 months even after IPO
→ If company doesn't list, you're stuck forever

But here's the thing...

Some investors who picked the right unlisted stocks have seen 5x to 20x returns over a few years.

The kicker? SEBI chief just hinted at launching a regulated platform for unlisted share trading.

This changes everything.

How to approach this smartly:

→ Only invest 5-10% of your equity portfolio
→ Research business, industry growth, IPO timelines
→ Check financials (harder since they're private)
→ Have clear exit plan

Platforms like Incred and Precize now offer access with lower ticket sizes.

Current regulatory update:

SEBI is planning a "when-listed" platform for regulated trading between IPO allotment and listing.
This will reduce grey market risks significantly.

But remember: before chasing 5x-20x returns, build your foundation first.

What are your thoughts on unlisted shares?

Too risky or worth exploring for that Zomato-before-IPO opportunity?

RT if this opened your eyes to something new 👆