- National Securities Depository Ltd will lock-in all pre-IPO equity shares from July 18
- No off-market buy or sell transactions allowed under unlisted category until six months post-listing
- NSDL instructed depositories to freeze ISIN of its equity shares from Friday to enforce lock-in
Ahead of its much-anticipated initial public offering, National Securities Depository Ltd. has informed its shareholders that all its pre-IPO equity shares will be locked-in starting July 18. This means that no off-market buy or sell transactions will be permitted under the unlisted category until six months after the company's listing on the stock exchanges.
The move is in line with regulatory norms that mandate a lock-in of pre-IPO equity capital to ensure stability and compliance during the listing process.
In an official communication to shareholders, NSDL said, "The equity shares of the Company are required to be unencumbered and free from being pledged. The entire pre-IPO equity share capital… shall be locked-in for a period of six months from the date of allotment or such other period as may be prescribed.”
To implement this, NSDL has instructed both depositories – NSDL and CDSL – to freeze the International Securities Identification Number of its equity shares effective Friday. The ISIN freeze effectively suspends all off-market transactions of NSDL shares under the unlisted securities category until the date of listing.
The company also urged shareholders not to pledge any shares during this lock-in period, highlighting the importance of shareholder co-operation in ensuring a smooth and compliant IPO process.
This lock-in applies to the entire pre-IPO share capital, including any unsubscribed portion of the Offer for Sale by selling shareholders. The only exception is the equity shares that will be transferred under the IPO itself.
The listing of NSDL is one of the most awaited in the financial services sector this year, given its central role in India's capital market infrastructure. With this announcement, the company has cleared another regulatory hurdle, moving one step closer to its public debut.
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