How to Sell NSDL Unlisted Shares: A Step-by-Step Guide

Selling unlisted shares of NSDL (National Securities Depository Limited) involves a slightly different process than trading listed shares on a stock exchange. As NSDL is not listed publicly, its shares are traded in the private unlisted market, which requires careful steps, appropriate documentation, and an authorised intermediary to facilitate the deal. 

Documents Required for Selling NSDL Unlisted Shares 

You must hold a Demat account to sell unlisted NSDL shares. But before you initiate the sale, you should gather the following documents: 

• Client Master Report (CMR): This document displays your Demat account details and is required for verification purposes. 

• Delivery Instruction Slip (DIS): This is used to transfer shares off-market. 

• PAN & Aadhar Card: These are necessary for identification and compliance purposes.  

What is the Process to Sell NSDL Unlisted Shares?  

Unlike listed shares, NSDL unlisted shares are traded through authorised dealers or brokers who specialise in such transactions. Choose a reputable intermediary who can connect you to potential buyers and ensure smooth processing. You can choose either an online or offline mode if selling NSDL unlisted shares. 

Steps to Follow When Selling Through Offline Mode  

If you have an account with NSDL, then you can follow these steps for making off-market transactions in an offline mode: 

• Fill out the DIS form with the ISIN number, buyer’s DP ID, and other required information. 

• Submit the form and your documents to your broker’s office. 

• Once verification is done, your shares will be transferred to the buyer’s Demat account. The payment will follow on the same day. 

Steps to Follow When Selling Through Online Mode 

If your Demat account is held with CDSL (Central Depository Services Limited), you can use their online platform called EASIEST (Electronic Access to Securities Information and Execution of Secured Transactions) for off-market share transfers. Here’s how: 

1. Register on EASIEST via the CDSL website with your Demat account details. 

2. Once registered and verified, you can log in to initiate a share transfer electronically to a pre-approved buyer’s Demat account. 

3. You’ll need the buyer’s DP ID, client ID, and ISIN of the unlisted shares. 

4. The system securely processes the transaction without requiring a physical form. 

Understand Tax Implications on Selling NSDL Unlisted Shares 

 Capital gains tax applies based on your holding period: 

• Short-term (≤24 months): Taxed as per your income slab. 

• Long-term (>24 months): Taxed at 20% with indexation benefits. 

Read more: ₹15000 SIP: Fast-Tracking Your ₹1 Crore Retirement Corpus 

Conclusion 

When selling NSDL unlisted shares, it's important to ensure that the share price is fairly negotiated based on current market demand and the company’s valuation. Since unlisted shares typically have lower liquidity, it may take some time to find the right buyer at your desired price. By carefully following the required steps and working with a knowledgeable and trusted dealer, you can complete the sale smoothly and securely. 
 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.