IPO-bound NSE streamlines share transfers from March 24, here’s what you need to know

Starting Monday, March 24, NSE shares can be credited to a user’s account in just a few days instead of 2-4 months ahead of NSE’s much-awaited IPO.

The National Stock Exchange of India, the country’s largest stock exchange, has simplified its share transfer process, making it more efficient.

What used to take nearly 1-3 months to be executed will now be done in a couple of days. Until now, to buy NSE shares, one had to get approval from the NSE in 2 stages, a Know Your Customer (KYC) check and a ‘fit and proper’ assessment. This will no longer be required as shares will not be in ‘freeze’ status. Now, depositaries will handle the verification of share transfers.

The activation of NSE’s ISIN (International Securities Identification Number), a unique global code, will streamline the share transfer process, enhance liquidity, improve trading volumes and fuel investor interest in NSE shares in the unlisted market. Currently, NSE already has over 20,000 shareholders, as per reports.

In accordance with the circular by the Securities and Exchange Board of India (SEBI) dated October 14, 2024, the ISIN of NSE will be activated/unfrozen with effect from Monday, March 24, NSE said on Friday, March 21.

Monday onwards, NSE shares will be able to be transferred through a Delivery Instruction Slip (DIS), and buyers and sellers will be able to trade them just like other unlisted shares.

“.....effective from the said date, the shares of the Company can be transferred through the Delivery Instruction Slip (DIS) mechanism and the existing process of submitting share transfer applications under Stage I and Stage II process shall be discontinued,” NSE stated. This will significantly reduce time and cost and will give the IPO-bound bourse wider access to investors.