Starting Monday, investors in the National Stock Exchange of India will be able to transfer unlisted shares with just a delivery slip—no more waiting months or navigating a two-stage approval maze. The shift to the delivery instruction slip (DIS) mechanism marks a major procedural overhaul as the IPO-bound exchange prepares for wider investor access.
The NSE has announced that from March 24, its unlisted shares will be transferable through the DIS mechanism, eliminating the existing requirement for exchange approval.
“Given Sebi’s circular dated October 14, 2024, the ISIN of NSE will be activated/unfrozen with effect from Monday, March 24,” the exchange said in a message to shareholders. “Accordingly, from Monday, the shares of NSE can be transferred through the DIS mechanism without following the existing Stage 1/Stage 2 process.”
The current system involves a manual, two-stage process: first, a KYC check, followed by a “fit and proper” assessment. These steps have been cited for delays of up to six months, largely due to limited NSE staff and the physical verification involved.
The new mechanism is expected to reduce transfer timelines to just 3–5 days. Verifications will now be handled by depositories, which already hold detailed investor data.
The move comes amid rising frustration among investors over sluggish timelines.
A broker said the delays, which stretched up to six months, often unsettled institutional investors. In many cases, the share price changed by the time transfers were completed, resulting in deals being cancelled.
Demand for NSE shares in the unlisted market has surged, with prices doubling in the past year. As of December 31, 2024, NSE had 20,444 shareholders, and its shares currently trade at Rs 1,850 apiece on an ex-bonus basis.
As per Sebi regulations, only investors meeting the “fit and proper” criteria can hold stock exchange shares. Anyone acquiring over 2% of shares must seek regulatory approval within 15 days, while a 5% stake requires prior Sebi clearance.
To transfer shares offline via DIS, investors must submit details including the ISIN code, DP ID, Client ID, and choose the correct transfer mode—off-market or inter-depository.