Mumbai, June 24 -- Investors who bought HDB Financial Services' unlisted shares are in for a rude shock, as the HDFC Bank's non-banking arm is launching its initial public offering (IPO) at a price band of Rs.700-740.

Before the announcement, HDB Financial's unlisted shares were trading at Rs.1,250 apiece.

As a result, the price of HDB Financial's shares has corrected sharply in the grey market. To compound matters, regulations require a six-month lock-in post-IPO.

Here are the risks that investors should consider before dabbling in the unlisted markets.

Acquiring unlisted shares always involves the risk of fraud, as such transactions aren't facilitated by any regulated platform like an exchange.

"Investors can even lose their capita...