New mechanism to speed up transfer of unlisted NSE shares
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Shares of the IPO-bound National Stock Exchange of India will be easily transferable between investors starting Monday, as the bourse moves from an exchange approval-based system to the delivery instruction slip (DIS) mechanism. The shift is expected to shrink share-transfer timelines from as long as six months to just 3 to 5 days, streamlining transactions in the highly sought-after unlisted market. “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.” Under the existing system, share transfers require a two-stage process—first, a know-your-customer (KYC) check, followed by a “fit and proper” assessment. The exchange has been conducting these checks manually, causing signific...