National Stock Exchange

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

ABOUT

National Stock Exchange (NSE): India’s largest stock exchange, founded in 1992, with a market cap of $ 3.4 trillion and a dominant position in derivatives and cash market segments. It is the leading stock exchange in India and the second largest in the world by nos. of trades in equity shares from January to June 2018, according to the World Federation of Exchanges (WFE) report. NSE launched electronic screen-based trading in 1994, derivatives trading (in the form of index futures), and internet trading in 2000, which were each the first of its kind in India. NSE has a fully-integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education offerings. NSE also oversees compliance by trading and clearing members and listed companies with the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients. NSE was incorporated in 1992. It was recognized as a stock exchange by SEBI in April 1993 and commenced operations in 1994 with the launch of the wholesale debt market, followed shortly after by the launch of the cash market segment.

Dividend History: NSE has declared dividends every year since 2015, with a dividend payout ratio ranging from 25% to 50%. The latest dividend was Rs 27.5 per share for FY 2021-22.

Unlisted Shares: NSE unlisted shares are traded in the unofficial market, with prices varying from Rs 3800 to Rs 4100 per share. The shares are legal to buy and sell, but subject to capital gains tax and SEBI regulations.

IPO Plans: NSE has been planning to go public for a long time, but faces several hurdles such as legal disputes, regulatory issues, and government priorities. The IPO may be delayed to the next financial year or beyond.

History of NSE:

1995: Setup wholly-owned subsidiary, NSE Clearing, which became the first clearing corporation to be established in India (according to the Oliver Wyman Report). NSE Clearing commenced clearing and settlement operations in the following year.

1998: Established NSE Indices, their subsidiary, as a joint venture with CRISIL Limited to operate an indices business. NSE Indices became a wholly-owned subsidiary in 2013 following the acquisition of CRISIL’s 49% stake.

1999: Established NSEIT, a wholly-owned subsidiary and a global technology firm that provides end-to-end technology solutions, including application services, infrastructure services, analytics as a service, and IT-enabled services. In 2015 and 2016, respectively, NSEIT launched its Testing Center of Excellence and Integrated Security Response Center

2000: Incorporated DotEx, a wholly-owned subsidiary, and consolidated the data and info-vending business under DotEx.

2006: Incorporated NSE Infotech Ltd., a wholly-owned subsidiary for IT research and development.

2016: Consolidated the education business under NSE Academy, a wholly-owned subsidiary. Incorporated two new subsidiaries, NSE IFSC Limited and NSE IFSC Clearing Corporation Limited, in furtherance of NSE’s long-term business strategy to establish an international exchange in GIFT City.

NATIONAL STOCK EXCHANGE OF INDIA LTD (ISIN: INE721I01024)

Procedure to buy NSE unlisted shares:

Please reach us if you need more info

Stage 1: Pre-NSE Board Approval

This is the initial stage of NSE to obtain the client’s name approval from NSE board before moving on to the next level. You need to provide all of the KYC documents, such as a copy of CML, PAN card, Aadhar card, and a cancelled cheque. As soon as Investolane has all of the paperwork, we will begin preparing the various Annexures and SPA, which will subsequently be submitted to NSE for name clearance.

The procedure described above is usually completed in 1 to 1.5 months if all the documents are submitted in the correct order and without any errors.

Stage 2: Post-NSE Board Approval

After Investolane has obtained the name clearance from the NSE board, the documentation for Stage 2 starts, during which we require a verification letter from your broker authenticating both your DP IDs and your signature. In addition to this, we will require DIS slips to transfer shares from one demat account to another. Once we have obtained all the necessary documentation, we will forward the case to the NSE to transfer the shares, a process that will take one month to complete.

Timeline

The process of obtaining NSE shares transferred into a client’s demat account can take up to three months and involves some amount of paperwork to be completed.

The complete process is very simple (even though looks little complicated) and Investolane team guides you during each stage and step and whenever needed.

Payment Schedule

1. 35% Payment of total consideration shall be paid at the time of deal confirmation i.e., execution of deal confirmation contract between buyer and seller.

2. Next 35% shall be paid at the time of documentation i.e., before submission of documents to the NSE. The name clearance is the time-consuming process which generally takes 3 months.

3. Rest 30% of total consideration shall be paid after receiving the permission from NSE.

Note: If for any reasons permission is not granted from NSE, then the total consideration i.e., paid before submission of documents to NSE shall be refunded in full without any interest/any other benefit.

Note: Refundable in case of rejection

KYC Documents list

Below are the documents required:

1. Pan

2. Aadhaar

3. Qualification

4. Experience

5. Mobile

6. Email

7. CIBIL Score

8. Net-worth Certificate

9. DIN (applicable in case you are director in a company)

10. List of unquoted or unlisted shares

11. Client master list

Documentation Charges

As an investor, you need to pay the stamp duty for share purchase agreement and stamp paper cost. The rough cost of these documentation is around 10,000rs. The cost of documentation will go to the Government. This is non-refundable.

Please find attached zip file with all the document that is required to buy NSE unlisted shares:

🔖Unlisted Insights

NSE’s unlisted shares rally over HNI, retail demand

FPIs sell NSE shares on IPO uncertainty, derivatives volume concerns

NSE’s unlisted shares rally over HNI, retail demand

Additionally, a rally in the shares of the two listed exchange operators - BSE and MCX - and the unlocking of value through the proposed public issue of the National Securities Depository, in which NSE holds a 24% stake, also played a role in fueling the price, the brokers said.

Investors Move HC Over NSE IPO Delay

FPIs sell NSE shares on IPO uncertainty, derivatives volume concerns

NSE’s unlisted shares rally over HNI, retail demand

In an affidavit filed last week, the People Activism Forum argued that even three months after NSE reapplied for Sebi's green light on August 27, 2024, the market regulator was yet to provide a valid justification for withholding permission for the IPO or the listing of NSE shares.

FPIs sell NSE shares on IPO uncertainty, derivatives volume concerns

Foreign portfolio investors (FPIs) appear to be turning bearish on India's National Stock Exchange, with data showing that foreign investors have been net sellers of the unlisted exchange's shares. FPIs have now been net sellers of NSE shares for six straight months, with the last instance of net FPI buying seen in January.

🔖 To catch the NSE Buzz, check Unlisted Insights section!

🔖 To catch the NSE Buzz, check Unlisted Insights section!

🔖 To catch the NSE Buzz, check Unlisted Insights section!

🔖 To catch the NSE Buzz, check Unlisted Insights section!

🔖 To catch the NSE Buzz, check Unlisted Insights section!

🔖 To catch the NSE Buzz, check Unlisted Insights section!