Transfer of NSE shares to get faster with streamlined new mechanism

Bourse removes two stages of the transfer process, bringing down the timeline from over four months to four days

Top bourse National Stock Exchange (NSE) has streamlined the process for transferring its shares, significantly reducing the time required.

 

What previously took three to four months can now be completed in less than a week, according to industry experts.

 

Starting March 24, activation of NSE’s ISIN -- a unique global code for securities trading and settlement -- will enable this faster process.

 

This change is expected to enhance liquidity, increase trading volumes, reduce lot sizes, and boost interest in NSE shares within the unlisted market. Already, the exchange has over 20,000 shareholders.

 

“The ISIN of NSE will be activated/unfrozen effective Monday, March 24, 2025. From that date, NSE shares can be transferred via the Delivery Instruction Slip (DIS) mechanism, eliminating the existing Stage 1 and Stage 2 processes,” NSE stated.

 

Previously, the transfer process involved two stages: Stage 1 required a lengthy KYC verification, including a “fit and proper” assessment and compliance with individual and sectoral holding limits, often taking months.

 

Stage 2 handled the debits and credits between buyers and sellers using a reference number, as direct transfers were not permitted. Both stages are now being removed, with verification responsibilities shifting to depositories, akin to listed entities.

 

However, as NSE remains unlisted, clearing corporations will not be involved, an industry insider explained.

 

As of December 2024, resident individuals held a 15.63 per cent stake in NSE, while FDI and FPI accounted for 20.37 per cent and 2.11 per cent, respectively.

 

Insurance companies, corporates, and venture capital firms also own significant shares. Key stakeholders include Life Insurance Corporation (LIC), SBI Capital Markets, Aranda Investments (Mauritius), SBI, Canada Pension Plan Investment Board, and Radhakishan Damani.  

New portal for muni bonds

 

The National Stock Exchange (NSE) on Friday launched a dedicated website for tracking municipal bond issuances.  The website India Municipal Bonds will help investors access comprehensive data on issuances, credit ratings, trading volumes, intrinsic yields, prices and historical performance of the Nifty India Municipal Bond Index.