Unlisted Shares Glossary

A

Aadhaar eKYC: Electronic verification of your Aadhaar card via an OTP sent to the mobile number linked to it. Polemarch uses this for one of the four KYC steps.

B

BO IDBeneficial Owner ID: The unique identifier of your demat account with CDSL or NSDL. CDSL uses a 16-digit number starting with 12; NSDL uses an 8-char alphanumeric DP ID + 8-digit client ID.

C

CDSLCentral Depository Services Limited: One of India's two central depositories (the other is NSDL). Holds equity, debt, and MF units in electronic form. Promoted by BSE. Dominant with retail brokers.
CMRClient Master Report: A one-page PDF from your depository (CDSL or NSDL) listing your demat details — BO ID, holder name, PAN, address. Polemarch requires it during KYC to verify the demat that'll receive your shares.

D

DISDelivery Instruction Slip: The form a seller's broker submits to move shares from the seller's demat to the buyer's demat in an off-market transfer. Must include ISIN, quantity, and the target BO ID.
DPDepository Participant: An intermediary (your broker — Zerodha, Groww, Kotak, HDFC, etc.) that provides access to a depository (CDSL or NSDL) on your behalf.
DRHPDraft Red Herring Prospectus: The preliminary IPO document a company files with SEBI 6–18 months before listing. Public filing of a DRHP is usually a strong bullish signal for unlisted-share prices.

E

ESOPEmployee Stock Option Plan: Stock options granted to company employees, exercisable at a strike price. On Polemarch, ESOP buybacks are secondary trades where an employee sells their exercised shares — often the cheapest bucket.

F

FIFO capture: First-in-first-out order of auto-capture on Polemarch. When a held order is waiting for funds, the oldest held order gets funded first as new wallet credits arrive.

G

Grey-market price: Informal price at which unlisted shares trade between dealers before a formal platform quote exists. Noisy but useful for valuation triangulation.

H

Held order: A Polemarch order that's been placed but is awaiting wallet funding. The order stays reserved; shares deliver automatically the moment wallet balance covers the total.

I

IMPS / NEFT / RTGS: The three main bank transfer rails in India. IMPS = real-time, ≤₹5L per txn; NEFT = hourly batches, no upper limit; RTGS = real-time for ≥₹2L. Polemarch accepts all three into your VBA.
Indexation: A tax-reduction mechanism for long-term capital gains on unlisted shares. The cost of acquisition is inflated using CII (Cost Inflation Index), reducing the taxable gain. 20% + cess applies on the indexed gain.
ISINInternational Securities Identification Number: The 12-character code that uniquely identifies a security worldwide. Indian ISINs start with IN. Every transaction must cite the ISIN to prevent mix-ups between share classes.

K

KYCKnow Your Customer: Identity verification required by SEBI. On Polemarch: PAN + Aadhaar + bank account + demat CMR — all verified through our Secure-ID partner.

L

LTCGLong-Term Capital Gains: Gains from unlisted shares held longer than 24 months, taxed at 20% with indexation. The 24-month clock starts when shares land in your demat.

N

NSDLNational Securities Depository Limited: India's other central depository (with CDSL). Promoted by NSE. Historically dominant with institutional investors and NSE-listed brokers.

O

Off-market transfer: A share transfer that doesn't go through an exchange. The standard settlement method for unlisted shares — seller's DP moves shares directly to buyer's demat via a DIS.

P

PANPermanent Account Number: Your 10-character income-tax identifier in India. Mandatory for every Polemarch KYC — the name on PAN is matched against your account name.
Penny-drop: A ₹1 verification transfer used to confirm bank-account ownership during KYC. The bank returns the registered account-holder name, which Polemarch matches against your PAN.
Pre-IPO: A company that has filed or is expected to file a DRHP/RHP with SEBI. Pre-IPO shares on Polemarch are typically sold by early employees or departing investors ahead of public listing.

R

RHPRed Herring Prospectus: The final IPO prospectus, filed with SEBI after DRHP review. Filing of the RHP signals an imminent public issue — usually within weeks.

S

SEBISecurities and Exchange Board of India: India's securities-markets regulator. Regulates depositories, brokers, exchanges, and investor KYC standards. Polemarch operates entirely within SEBI's depository framework.
Stamp duty: A 0.015% levy on the transfer value of off-market equity transfers. Collected by the seller's DP at DIS execution and reflected on your Polemarch invoice.
STCGShort-Term Capital Gains: Gains from unlisted shares held ≤ 24 months, taxed at your income-tax slab rate (potentially 30% + surcharge + cess). Contrast with LTCG.

T

T+2 settlement: Shares reach your demat two working days after payment clears. Polemarch's typical settlement window for off-market unlisted transfers.

U

Unicorn: A private company valued at over $1 billion. Typical targets on Polemarch include New-Age Unicorns (Razorpay, Swiggy, Zepto-class) in the Pre-IPO bucket.

V

VBAVirtual Bank Account: A per-customer, per-source-bank account number that forwards anything received into your Polemarch wallet. Source-locked — only transfers from your registered bank are accepted.

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