From The Economic Times · Ravindra Sonavane · · 40s
NSE Exit Slows Unlisted Share Trading
NSE listing causes sharp drop in unlisted share trading volumes.
In brief
NSE listing causes sharp drop in unlisted share trading volumes. NSE's entry into the stock market reduced unlisted share trading activity by nearly half. Originally reported by The Economic Times.
NSE listing impact
Trading activity in unlisted shares dropped after NSE entered the stock market.
“NSE made up nearly 50-60% of trading volumes in unlisted markets, so with NSE listing, many expect unlisted activity to slow down sharply”
NSE dominance
NSE accounted for over half of unlisted trading volumes before listing.
“NSE made up nearly 50-60% of trading volumes in unlisted markets”
Market shift
Other exchanges like MSEI gained interest but none matched NSE's trading volumes.
“Metropolitan Stock Exchange of India (MSEI) has emerged as the most actively bought unlisted stock”
Investor reaction
Brokers say NSE listing caused sharp slowdown in unlisted share trading activity.
“The value of average daily client purchases of unlisted shares has nearly halved across various platforms since the exchange's listing”
Future outlook
Market shows interest in new companies despite NSE's listing impact.
“While NSE's listing may cause some near-term moderation in volumes, the market is continuing to see interest in the next set of potential opportunities”
The main idea
NSE's entry into the stock market reduced unlisted share trading activity by nearly half.
