NSE Investor Base Triples In A Fortnight

It has been quite remarkable that the National Stock Exchange of India (NSE), which is India’s largest stock exchange and a top derivatives player, has witnessed very high demand for its unlisted shares from investors. The community of investors has almost tripled in the last two weeks, going from 20,000 to almost 60,000

A major advance in regulation has made sharing NSE shares in the grey market much simpler to do without anyone getting into legal trouble.

What Was the Cause of the Boom?

On March 24, 2025, NSE’s International Securities Identification Number (ISIN) was removed from freezing, which made it much easier to transfer shares. With this new system, buyers and sellers of unlisted NSE shares can rely on the popular DIS process, the same as for off-market trades in listed securities.

Consequently, there has been:

• More efficient and smoother carrying out of transactions
• Less paper and fewer delays with rules and regulations
• Many retail and HNI investors have become much more interested in investing.

Going from Bureaucracy to Simplicity Has Had a Game-Changing Impact

Purchasing unlisted shares on the NSE was not for those seeking low risk until very recently.

Transfers involved:

• Tedious KYC checks
• Signing Share Purchase Agreements
• Getting through SEBI’s ‘fit and proper’ evaluations
• A two-stage approval cycle with the exchange itself

So, now, most investors can follow their applications online through the CDSL using their PAN, which eliminates the upfront manual step. Now that the rule has been changed, there are fewer hurdles for investors considering unlisted equity investments at a big asset like NSE.

Why NSE Shares Are Always in Demand

Although the timing of its IPO is uncertain, NSE has consistently attracted a lot of interest in the unlisted market.

Here’s why:

• Leading role in India’s equity and derivatives markets
• Being at the forefront in the number of derivatives contracts traded
• Knowing that a major IPO will be coming in the future
• Good financial results and increasing market value

In the 2024 Burgundy Private Hurun India 500 list, it was revealed that NSE’s valuation jumped by 201% in a year, to reach ₹4.7 lakh crore and become India’s tenth most valuable private company, after Reliance and TCS.

A Win for Transparency and Compliance

This isn’t just a win for investors — regulators and market watchdogs are benefiting too. With automated PAN-based tracking, SEBI and depositories can now:

• Regularly track the patterns of ownership of shares by different groups
• Maintain the industry standard of no more than 49% of the business owned by brokers and associates.
• Maintain compliance with the ‘fit and proper’ standards even in a model where details are collected after the fact.
• Identify red flags or possible regulatory breaches early on.

This means the system today is smarter, swifter and more efficient, without compromising on due diligence.

The Road Ahead: IPO or Not, NSE Appeal Is Stronger Than Ever

There has been a lot of speculation over the IPO of NSE for years, but the recent rise in investor interest proves that investors are still very confident about the exchange’s future value.

Experts believe this new liquidity and accessibility will:

• Promote efforts to understand more about India’s unlisted equity sector
• Motivate other exchange and financial infrastructure companies to think about taking comparable actions.
• Increase the interest from traders and raise the market value of the asset

In only two weeks, the NSE saw its investor base triple, which goes beyond simply being a headline. Strong regulation, together with great assets, allows much bigger groups of investors to join in. Because of better compliance, more chances to access and hopes for an IPO, the popularity of NSE unlisted shares is rapidly rising, and this is just the beginning. For investing in NSE shares, you can check Stockify.