The National Stock Exchange: A Historic Surge in India’s Unlisted Market
The National Stock Exchange (NSE) has recently ignited a remarkable surge in India’s unlisted market, with its retail investor base skyrocketing fourfold in just three months. This unprecedented growth comes amid rising anticipation surrounding its upcoming initial public offering (IPO). More than 100,000 new retail investors have entered the market, marking one of the most significant increases in the history of unlisted shares.
A Surge in Retail Investors
Between March and June 2025, the NSE’s retail investor count jumped from 33,896 to 146,208. This surge reflects a growing interest among individual investors, particularly those holding shares valued up to Rs 2 lakh, who now account for 11.81% of the company’s ownership—up from 9.89% in the previous quarter. The rapid increase has caught the attention of market analysts and investors alike, with many viewing it as a sign of a robust and expanding market.
Krishna Patwari, Founder and Managing Director of Wealth Wisdom India Pvt Ltd, remarked on this unprecedented growth, stating, "The surge in NSE’s retail shareholder base is truly unprecedented, a more than fourfold jump in just one quarter." This enthusiasm is largely fueled by the anticipation of the NSE’s long-awaited public listing, expected by the fourth quarter of FY26.
Regulatory Changes Fueling Growth
A significant regulatory change has played a crucial role in this surge. On March 24, 2025, the NSE lifted the freeze on its International Securities Identification Number (ISIN), allowing for seamless share transfers similar to other unlisted stocks. This regulatory tweak drastically reduced the share transfer timeline from up to three months to just one day, making it easier for smaller investors to participate in the market.
Patwari explained, "Earlier, the ISIN for NSE shares was not freely transferable, which made the buying and selling process complex and time-consuming. Today, trades are happening for as few as 10 shares, reflecting the growing retail interest."
Financial Performance and Market Dominance
Financially, the NSE continues to outperform its competitors. In FY25, its net profit surged by 47% to Rs 12,188 crore, while revenue rose by 16% to Rs 17,141 crore. With commanding market shares—94% in cash equities, 99% in equity index futures, and 88% in equity index options—the NSE remains the undisputed leader in India’s exchange landscape.
Brokerage firm Prabhudas Lilladher noted, "NSE’s net profit of Rs 12,188 crore in FY25 dwarfs BSE’s ~Rs 1,322 crore, clearly reflecting its dominance, scalability, and superior business model." This profit gap is not merely incidental; it highlights the structural advantages that the NSE holds over its competitors.
Global Standing and Institutional Interest
Globally, the NSE is recognized as the largest derivatives exchange by volume and the fifth-largest stock exchange by market capitalization. Its current market value is nearing Rs 5.4 lakh crore, with unlisted share prices reportedly doubling each year. In 2024 alone, the NSE hosted 268 IPOs, raising Rs 1.67 lakh crore.
The exchange has also attracted heavyweight institutional investors. As of June 2025, Life Insurance Corporation held a 10.72% stake, while prominent investor Radhakishan Damani owned 1.58%. Other key stakeholders include Aranda Investments, Stock Holding Corporation of India, and SBI Capital Markets.
Vijay Kuppa, CEO at InCred Money, commented, "NSE has consistently attracted attention in the unlisted space due to its strong business fundamentals and critical role in India’s financial infrastructure. With FY25’s solid numbers, investor demand has only increased—reflected in its shareholder base crossing 1 lakh."
The Road Ahead: Preparing for the IPO
With the Securities and Exchange Board of India (SEBI) confirming that all hurdles to the NSE’s IPO have been cleared, the exchange is now preparing for its public debut. The NSE has proposed a payment of Rs 1,388 crore to SEBI to resolve legacy issues related to co-location and dark fiber access that had previously stalled its public listing.
The preparation for the IPO is expected to take four to five months to finalize the draft red herring prospectus (DRHP), followed by another two to three months for regulatory approvals. For retail investors eyeing the NSE’s IPO, the window of opportunity is fast approaching. Many view it as a rare chance to invest in a cornerstone of India’s financial ecosystem, potentially unlocking gains from one of the country’s most anticipated public offerings.
Conclusion
The National Stock Exchange’s recent surge in retail investor participation and its strong financial performance underscore its pivotal role in India’s financial landscape. As the exchange gears up for its IPO, the excitement among investors continues to grow, promising a new chapter in the evolution of India’s capital markets. With its robust fundamentals and regulatory support, the NSE is poised to remain a key player in shaping the future of investing in India.
(Disclaimer: The opinions, analyses, and recommendations expressed herein are those of brokerage firms and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.)