Startup
Private Markets Intelligence
Startup Equity Secondaries: How to Actually Sell Your Unlisted Shares in India in 2026
Most people think "liquidity" only happens when a company IPOs. They are wrong. If you are sitting on vested ESOPs or early equity in a private company, you don't always have to wait for the ringing bell at the BSE. You can sell now. But the private market is opaque. Unlike the stock market where prices are public, startup equity is a game of nuances, rules, tax hurdles, and legal jargon. This guide breaks down exactly how to exit your position in 2026 without lost in the complexity. What is
How to Price Private Company Shares in a Secondary Transaction (India 2026)
Most founders, shareholders, and employees assume that if a VC valued their company at $100M in the last round, their 1% stake is worth exactly $1M today. They are wrong. In the public markets, price is truth. If Reliance trades at ₹2,500, you sell at ₹2,500. In the private markets, price is an opinion. Pricing a secondary transaction in 2026 is one of the most complex maneuvers in the Indian startup ecosystem. It sits at the intersection of Commercial Reality (what a buyer wants to pay) and
Step-by-Step: How to Fill Schedule CG for Capital Gains on Unlisted Share Sales
Schedule CG (Capital Gains) in ITR-2 or ITR-3 is where you report all unlisted share sales. Short-term capital gains (holding period ≤24 months) are reported in Section A5 under "Equity shares or units not listed on recognized stock exchange," while long-term capital gains (holding period >24 months) are reported in Section B9. * The Income Tax e-filing portal auto-calculates your gains once you enter the sale consideration, cost of acquisition, and expenditure on transfer. * Each transactio
Can You Sell Shares in Private Companies Below Fair Market Value?
Yes, you can legally sell unlisted shares below fair market value, but Section 50CA of the Income Tax Act means you'll still pay capital gains tax as if you sold at FMV even though you received less. For example, if you sell shares for ₹50 lakh when FMV is ₹80 lakh, the tax department treats it as an ₹80 lakh sale for tax purposes, and you pay tax on ₹30 lakh you never actually got. This provision was introduced in 2017 to stop tax evasion through artificially low share prices between family me
Dematerialization’s Impact on Secondary Share Transfers - Rule 9B
In 2026, the days of of physical share certificates in Indian private companies (non-small) seems like it is closer to an end. Probably not overnight, or maybe not by the end of this year. But as per Rule 9B, it seems like India is heading towards a day where private shares will also be completely digital. The Ministry of Corporate Affairs (MCA), via the introduction of Rule 9B in the PAS Rules, has fundamentally altered the mechanics of secondary transactions. As per the rule, If your private
Factors That Affect Startup Valuation during a Liquidity Event
TL;DR: Startup valuation holds the key to defining moments like fundraising, acquisition, or IPOs. This blog explores crucial factors shaping valuation, from revenue growth and market opportunity to technology strength and team quality. Understand these drivers to make informed decisions, maximize valuation, and set the stage for successful liquidity events. Introduction In a startup's lifecycle, a liquidity event serves as a defining moment that enables stakeholders to realize the value of t