When you buy unlisted shares, they arrive in demat form, whether they are listed or unlisted. The share can only be transferred from the seller’s demat account to the buyer’s demat account in demat form. According to Rule 9A, which went into effect on October 2, 2018, every unlisted public company must issue shares in dematerialized form and facilitate the dematerialization of all existing shares. despite the fact that the same rule states that every unlisted private limited company has the option. However, whether the company is public or private, the shares must be in demat form for transfer.