How to Prevent Frauds in the Unlisted Shares Market: A Guide for Retail Investors

The unlisted shares market in India has gained massive traction in recent years, with growing interest in pre-IPO companies like NSE, Tata Capital, and HDB Financial. However, this rise in popularity has also led to a parallel rise in unlisted shares frauds. As retail participation increases, so does the need for investor education and caution.

If you're looking to build wealth through unlisted shares in India, here are practical tips to avoid getting scammed and ensure you’re dealing through safe, regulated channels.

1. Always Buy from a Trusted Source

The first rule to prevent fraud in the unlisted market is never buy shares from an unknown or unverified source. Always deal with reputed platforms like UnlistedZone, India’s most trusted name in unlisted shares.

a) Check if the broker has a physical office

b) Prefer face-to-face or video call discussions before money transfer

c) Avoid random DMs, WhatsApp groups, or Telegram offers that sound too good to be true

Tip: Visit the office physically, verify the company profile, and ensure all documentation is properly executed before transferring funds.

2. Buy in Tranches to Reduce Risk

Even if you're confident about the deal, it’s wise to break down your investment into smaller tranches instead of deploying a large amount at once.

Example:

• Instead of buying ₹5 lakh worth of NSE shares in one go, buy ₹1 lakh first.

• Confirm delivery of shares in your Demat account (NSDL/CDSL).

• Then proceed with the next tranche.

This reduces your downside risk and gives you time to verify the genuineness of the broker.

Remember: Genuine brokers like UnlistedZone are open to phased transactions.

3. Never Fall for Greed – Avoid FOMO Traps

Scammers often lure retail investors by offering shares at “exclusive” or “lower than market price” rates. They create urgency by saying:

“Sir, buy now! NSE shares are at ₹3500 today, tomorrow it will hit ₹4000!”

This is a classic FOMO (Fear of Missing Out) tactic.

a) Verify the actual market price on trusted platforms like UnlistedZone

b) Don’t rush because of verbal pressure

c)  Ask for trade history or buyer testimonials

Always remember: In the unlisted market, there’s no formal price discovery. But that doesn't mean you ignore basic checks.

4. Check for Contract Notes

Ask for a valid contract note for your transaction. This proves:

• The deal was recorded officially

• You can claim support in case of dispute

Platforms like UnlistedZone provide fully documented deals with clear audit trails.

5. Avoid Unverified Payment Channels

Avoid sending money to:

• Personal UPI IDs

• Unknown accounts without business registration

• WhatsApp QR codes

Prefer payments to a registered business entity with matching GST, PAN, and CIN details.

UnlistedZone only accepts payments in its official company bank accounts.

Final Thoughts

The unlisted shares market is exciting and full of opportunities, but it’s also unregulated. That makes fraud prevention a personal responsibility.

By following the above tips and partnering with trusted platforms like UnlistedZone, you can protect your hard-earned money and invest confidently in India’s most promising pre-IPO companies.

For more insights, visit www.unlistedzone.com — India’s No. 1 platform for unlisted shares.