NSE investor base triples after share transfer rule change

MUMBAI: India’s largest stock exchange, the National Stock Exchange (NSE), has seen its unlisted share investor base triple in just over two weeks, jumping from around 20,000 to nearly 60,000. This surge follows a key regulatory shift allowing easier share transfers via the Delivery Instruction Slip (DIS) mechanism, introduced after the unfreezing of NSE’s ISIN on March 24, 2025.

Previously, transferring NSE’s unlisted shares involved a two-stage approval process, including submission of a Share Purchase Agreement, KYC checks, and a stringent ‘fit and proper’ test as mandated by SEBI. Under SEBI’s October 2024 circular, the simplified process now enables transfers through the Central Depository Services (India) Ltd (CDSL), automating tracking and ensuring regulatory compliance via PAN-based monitoring. NSE shares have long been in high demand, even without a confirmed IPO timeline. As of December 2021, NSE had just 1,941 investors, which grew to over 20,000 by early 2025. The ISIN activation in March triggered a sharp rise, taking the number to nearly 60,000 by April 11, 2025.

Experts say the move enhances transparency in exchange ownership and streamlines regulatory checks, especially important given that brokers and their affiliates are capped at a 49 per cent stake.

Investor appetite is fuelled by NSE’s equity market dominance and its position as the world’s top derivatives exchange by trading volume, amid continued IPO speculation. NSE is India’s most valued unlisted company, with its valuation rising 201 per cent in 2024 to Rs 4.7 lakh crore, making it the 10th most valuable private firm.