Introduction to NSDL

  1. National Securities Depository Limited NSDL is one of the world’s largest depositories.
  2. Established in August 1996, NSDL operates a state-of-the-art infrastructure for handling securities in dematerialized form within the Indian capital market.
  3. The Depositories Act of 1996 facilitated NSDL’s establishment, addressing the issues of paper-based elements.
  4. NSDLfunctions as a depository, holding securities in accounts similar to bank accounts, enabling straightforward ownership transfers through account transfers. This systemeliminates the risks associated with paper transactions, oering a cost-eective environment.

Business Partners and Functions

NSDL operates through various business partners, which include:

  1. Depository Participants DPs): DPs provide depository services to investors on behalf ofNSDL. NSDL has expanded from three DPs to a nation wide presence.
  2. Issuer Companies and their Registrars and Share Transfer Agents.
  3. Clearing Corporations of Stock Exchanges: facilitate the selement of trades on stock exchanges for dematerialized shares. Major clearing houses are electronically connected to NSDL.

Market Presence

  1. Client Accounts: NSDL has over 3.57 crore active client accounts, increased from 2.17crore in 2021, demonstrating its extensive customer base.
  2. Geographic Coverage: NSDL operates in 2,048 cities and towns, with a presence in99.31% of all pincodes, reecting its nationwide coverage.
  3. Market Inuence: NSDL manages a demat custody value of ₹423.44 lakh crore(approximately US$ 5079 billion), showing its signicant impact on the Indian capital market. It has 281 DPs and has joined 46,015 companies. Since November 1996, NSDL has averaged 5,270 new accounts opened daily.
  4. Number of Depository Participants DPs): NSDL has a network of 281 DPs, showcasing its extensive partnerships.
  5. Number of Companies Joined: NSDL has on boarded 46,015 companies, reecting its wide industry integration.

Frequently Asked Questions

How to Sell unlisted shares?

If you are wondering how to sell unlisted shares online, just fill out basic details in the form and our experts will get back to you. Right from the initial deal to the final transfer of shares, our unlisted share brokers will help. Check out the list of the best unlisted shares in India or reach out to reputed unlisted share dealer Instinct Wealth.

How to buy unlisted shares?

Due to past performance and potential to grow, investment in unlisted shares is a wise choice. At Instinct Wealth, you can easily buy and sell unlisted shares. You just need to connect with our experts, and they will help you throughout the process.

Is it legal to buy unlisted shares in India?

Yes, this is 100% legal and safe to buy unlisted shares. However, this is applicable when you buy unlisted shares from reliable and known unlisted share dealers. You can request a quote at Instinct Wealth, we are ready to assist you.

What is the documentation requirement for dealing in unlisted shares?

At Instinct Wealth, we have simplified the whole process of unlisted share trading. A basic KYC is required for investing in unlisted stocks. For KYC verification, you will need to show Aadhaar | PAN | Demat CML For NRI | PAN | DEMAT CML | NRO Bank statement. Want to know more about how to buy unlisted shares in India? Connect with us today!

How is the market price of unlisted shares calculated?

The pricing of unlisted shares is influenced by a variety of factors besides supply and demand; the most recent transactions on the same stock, the company’s last funding round, and the asset value level of companies of similar size impact the pricing of unlisted shares.

How do I sell unlisted shares?

Once we have agreed on the selling price and the number of shares, we will issue you a UTR (Unique Transaction Reference) number so you can transfer the shares. Once you transfer the shares to Instinct Wealth Demat account, the funds are transferred to your bank account in less than 24 hours or by the end of the next working day.

Can NRIs buy NSE unlisted shares in India?

NRIs, like domestic investors, can buy and sell NSE unlisted shares. However, their investment is non-repatriable.

What are the risks of investing in unlisted shares?

The liquidity risk is the most significant risk related to investing in unlisted stocks. Investors may choose to sell to another investor or wait for the company to be listed on the stock exchange.

Are unlisted shares subject to SEBI rules and regulations?

The trading of unlisted shares is controlled by the Securities and Contracts (Regulation) Act, which is monitored by SEBI. When the company’s stocks are listed on the stock exchange, the SEBI rules become applicable. Pre-IPO investors must commit to a 6-month lock-in period.

What is the least lock-in period for unlisted shares?

There are no regulations on selling or transferring your unlisted shares before the company goes public. However, once the company starts its initial public offering, retail investors have a minimum lock-in period of 6 months.