India’s 500% Boom in Unlisted Share Trades Shows Rush for Riches

As India’s stock exchanges expand, minting dozens of billionaires over the past few years, a sprawling and largely unregulated gray market for unlisted shares has emerged.

Analysts estimate that monthly trading has averaged as much as $300 million this fiscal year, up from $50 to $60 million last year. Investors are snapping up pieces of India’s hottest companies before they’re listed on benchmark indexes, including upstart quick commerce firms like Swiggy Ltd. and financial services provider Tata Capital Ltd.

The booming market for unlisted shares in India is giving top stockbrokers and asset managers another way to profit from stock ...