The National Securities Depository (NSDL), a company soon to launch its Initial Public Offering (IPO), has become a hot topic in the unlisted share market. Its stock has jumped by almost 40% in the last two months, even before its official listing. This article explains how you can acquire them for portfolio expansion.
NSDL share price is currently trading between ₹1,200 and ₹1,250 each, a significant jump from ₹900 in April 6. This is partly due to the simplified transfer process for unlisted shares and the strong street expectation of an upcoming initial public offering (IPO). NSDL's position as a leading depository in India, while exhibiting strong financial performance, has made it an attractive investment option for investors.
If you're interested in buying NSDL unlisted shares, here are the common methods:
Typically, you need to contact the broker, confirm the quantity of NSDL shares you wish to buy and the prevailing price. Once confirmed, you would transfer the funds to their account, and they would facilitate the transfer of shares to your demat account.
While less common for individual retail investors, it's possible to buy unlisted shares directly from existing shareholders, promoters, or founders. However, these transactions are usually facilitated by a broker or an intermediary to ensure a smooth and secure process.
For larger investments, you might consider investing through private equity funds, venture capital firms, or angel networks that specialise in private companies or startups. These entities pool funds from high-net-worth individuals to invest in unlisted companies.
Demat Account: To buy unlisted shares, you will need a demat account, just like with listed shares. The shares will be transferred to your demat account electronically.
Client Master Report (CMR): Your broker will require your Client Master Report (CMR) copy, which contains essential details like your DP-Client ID (BO ID), demat account holder name, and demat broking company name, for the share transfer.
Payment and KYC: Ensure that the payment for the shares is made from your bank account, as third-party transactions are generally not allowed. You will also need to complete Know Your Customer (KYC) requirements with your chosen broker.
Liquidity and Valuation: Unlisted shares are generally less liquid than listed shares, meaning it might be harder to sell them quickly. Their valuation can also be more challenging to assess due to the lack of a public market price.
Lock-in Period: Be aware that unlisted shares often come with a lock-in period after the company lists on an exchange, meaning you cannot sell them immediately after the IPO. For NSDL, the lock-in period for retail investors is generally 6 months from the date of listing.
Read more: NSDL Surges 30% in a Month, Boosted by IPO Activity and Unfreezing of Shares.
Investing in NSDL unlisted shares offers a chance to participate in the company's growth story before its public debut. By understanding the available avenues, the process involved, and the associated considerations, investors can navigate the unlisted market more effectively and potentially benefit from NSDL's journey towards its IPO.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 11, 2025, 10:20 AM IST
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