Unlisted Share Trading Activity Drops Following NSE Market Debut
· Business · Economic Times
Trading activity in the unlisted share market has fallen by nearly 50% since the National Stock Exchange of India (NSE) listed on the stock market last month. Brokers in Mumbai report that the exchange previously accounted for 50% to 60% of total volume in this unregulated over-the-counter space. While interest remains in other unlisted stocks such as Metropolitan Stock Exchange of India, Transline Technologies, and Quality Enviro Engineers, none have matched the high transaction volumes seen with NSE shares. The surge in activity for NSE had been driven by investors anticipating the company's September IPO.
Why it matters
The sharp decline in transaction volume impacts brokers and retail investors who previously relied on the NSE's high liquidity to trade in the unlisted market. This shift forces participants to look toward smaller, less-active companies to sustain trading activity in the over-the-counter space.
Read the original report — Economic Times
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