Back to PerspectivePre-IPO and Unlisted Shares

How to Check Whether Unlisted Shares Are Genuine

Janvi Bhalla1 min read

Understanding the Unlisted-Share Decision

Fraud risk sits at three levels: the company may be misrepresented, the security may be incorrect, or the seller may not own what is offered. Verification must address all three.

Reading the Transaction and Ownership Structure

Check the legal company name, CIN, security class and ISIN.

Review seller demat evidence through a controlled process.

Confirm intermediary identity, conflicts and commercial spread.

Where the Expected Exit Can Break

Screenshots and logos are easy to fabricate.

A genuine share can still be sold at an unjustifiable price.

Assurances of a fixed IPO date or guaranteed buyback are warning signs.

Making the Investment Decision

Before acting, answer five questions in writing: use independent company records; match isin and rights; avoid cash and third-party accounts; read transfer restrictions; and document every representation.

Genuine ownership is necessary, but price, rights and exit still determine whether the investment is sensible.

Key takeaways

  • Check the legal company name, CIN, security class and ISIN.
  • Screenshots and logos are easy to fabricate.
  • Genuine ownership is necessary, but price, rights and exit still determine whether the investment is sensible.

Related questions

What should an investor verify first?

Check the legal company name, CIN, security class and ISIN.

How does the structure affect the investor’s outcome?

Review seller demat evidence through a controlled process.

What is the main downside to test?

Screenshots and logos are easy to fabricate.

How should the final decision be made?

Genuine ownership is necessary, but price, rights and exit still determine whether the investment is sensible.

Need personalized advice?

Schedule a conversation about your private market allocation goals.

Request an Advisory Call