Archive · 25 Jul 2025
NSDL's New Rules for Unlisted Shares Raise Concerns
NSDL has made new rules about selling shares in companies that aren't listed on stock exchanges.
Now, if you want to sell your shares, you need the company's permission first.
The idea is to make sure everything is fair and follows the rules.
Some people worry this could make it harder for investors to sell their shares and give too much power to the company.
They suggest setting a time limit for the company to respond or using agreements to protect investors.
NSDL issued a circular affecting off-market share transfers in unlisted firms.
Shareholders must now get written consent from the company for transfers.
The rule aims to increase transparency and ensure compliance.
Concerns exist that the rule could disadvantage investors and give firms undue power.
Suggestions include setting a timeline for consent and strengthening shareholder agreements.
- Who
- The changes affect shareholders and unlisted private limited companies.
- What
- NSDL issued a circular requiring consent for off-market share transfers in unlisted companies.
- When
- The circular was issued in June.
- Where
- The changes apply to share transfers in demat format with NSDL.
- Why
- The changes aim to increase transparency and compliance.
Concerns over New Regulations
Goals of New Regulations
Investor Rights vs. Company Control
Concerns over New Regulations
Investors, especially PE/VC, may face difficulties in share transfers.
Goals of New Regulations
The circular may give undue advantage to the management of unlisted companies.
- Regulatory Body
- NSDL
- Subject
- Off-market share transfers
- Requirement
- Prior consent from the company
- Applicability
- Unlisted private limited companies
- Exemption
- Employee share transfers