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NSE’s retail shareholder base has exploded from 33,896 in March 2025 to 146,208 in June 2025, a staggering four-fold jump that has caught market veterans by surprise. Resident individuals holding nominal share capital of up to ₹2 lakh now command an 11.81% stake in the company, up sharply from 9.89% in the March quarter.
“The surge in NSE’s retail shareholder base is truly unprecedented, a more than fourfold jump in just one quarter,” Krishna Patwari, Founder and MD of Wealth Wisdom India Pvt Ltd (WWIPL.com), told ETMarkets.
The dramatic shift comes as NSE edges closer to its long-awaited public listing, with market reports suggesting the exchange could debut on BSE by Q4 FY 2026.
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The retail rush has been turbocharged by a critical regulatory change. Starting March 24, 2025, NSE removed the ISIN freeze, allowing investors to trade its shares freely like other unlisted securities. This slashed the share transfer approval process from three months to a single day, democratizing access for smaller investors.”Earlier, the ISIN for NSE shares was not freely transferable, which made the buying and selling process complex and time-consuming,” Patwari explained. “Today, trades are happening for as few as 10 shares, reflecting the growing retail interest.”SEBI Chairman Tuhin Kanta Pandey added fuel to the IPO speculation on June 21, stating there is “no obstacle” remaining in the way of the NSE IPO. The exchange has offered ₹1,388 crore to SEBI to settle the lingering co-location and dark fiber disputes that have delayed its public debut for years.
The investment case is compelling. NSE posted a net profit of ₹12,188 crore in FY25, up 47% year-on-year, while revenue grew 16% to ₹17,141 crore. The exchange maintains an iron grip on India’s trading ecosystem with a 94% market share in cash equities, 99% in equity index futures, and 88% in equity index options.
“NSE’s net profit of ₹12,188 crore in FY25 dwarfs BSE’s ~₹1,322 crore, clearly reflecting its dominance, scalability, and superior business model,” noted Prabhudas Lilladher in a recent report. “The profit gap isn’t incidental—it’s structural.”
Globally, NSE ranks as the world’s largest derivatives exchange by volume and fifth-largest stock exchange by market capitalization. NSE’s market capitalization is now around ₹5.4 lakh crore with its shares doubling in just one year. In 2024, it facilitated 268 IPOs, raising a record ₹1.67 lakh crore.
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The exchange’s stellar performance has attracted marquee investors. As of June 2025, Life Insurance Corporation owns a 10.72% stake, while billionaire Radhakishan Damani holds 1.58%. Other major shareholders include Aranda Investments, Stock Holding Corporation of India, and SBI Capital Markets.
“NSE has consistently attracted attention in the unlisted space due to its strong business fundamentals and critical role in India’s financial infrastructure,” said Vijay Kuppa, CEO at InCred Money. “With FY25’s solid numbers, investor demand has only increased—reflected in its shareholder base crossing 1 lakh.”
The co-location controversy, which dates back to a 2015 whistleblower alert about preferential access given to certain brokers, appears to be nearing resolution. Once SEBI issues a no-objection certificate, NSE would likely take 4-5 months to prepare its Draft Red Herring Prospectus, followed by another 2-3 months for regulatory review.
For retail investors betting on NSE’s IPO, the stakes couldn’t be higher. Many view this as a rare opportunity to invest early in one of India’s most prestigious financial institutions, hoping to capitalize on potential listing gains from what could be one of the country’s largest public offerings.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
