How Does The NSE Benefit From The Listing Of New Companies?
NSE, the largest stock exchange in India, was established in 1992 and began operations in 1994. It offers a fully automated screen-based trading system operating on a national scale. The exchange has more than 1,600 companies listed on its platform and has a market capitalisation of more than $3.27 trillion as of January 2023. Not only has NSE played a vital role in offering high ROI to retail investors, but also the companies which are listed on its platform. Companies such as Ashok Leyland Ltd., Reliance Infrastructure Ltd., India Cement Ltd., and many more have benefited by listing on the NSE in India. The exchange helps companies raise capital, improve brand visibility, enhance liquidity, etc. But how do these companies impact NSE share price, and what benefits does NSE get from these companies? Let’s start and confabulate this.
NSE Can Benefit In Several Ways From The Listing Of New Companies
Below is the list of benefits that NSE enjoys while adding new companies to its platform, which include:
High Trading Activity
Whenever a new company gets listed on the NSE, it leads to increased trading activity on the platform. With more companies listed on the platform, more stocks will be available for trading, which ultimately attracts many investors looking for investment opportunities to diversify their portfolios.
Portfolio Diversification
Every retail investor wants to diversify their investment portfolio to mitigate the investment risk. Therefore, new companies on the NSE offer investors a wide range of investment options to spread their risks across different industries. This reduces the impact of poor performance on any single stock.
Market Development
The continued listing of new companies to the platform contributes to the development of the share market. Since the NSE is the biggest stock exchange in India, the growth of the capital market boosts the company’s performance as well. With this, retail investors can also participate in the company’s growth and expect high ROI.
Increased Liquidity
The companies which get listed on the NSE contribute to the enhanced liquidity. The liquidity of any company refers to the ease through which assets can be bought and sold without affecting their price tremendously. The more companies get listed on the National Stock Exchange, the more liquid the market becomes.
This is how NSE benefits from the new companies that get listed on the platform, and its prices get impacted by the companies listed on the platform. Since NSE is still a pre-IPO company, its unlisted shares are available for trading for retail investors. There has been a prediction that NSE might launch its IPO in the next two years, which offers a golden opportunity for investors to make an early investment in NSE unlisted shares to get access to its first sale of IPO shares.
As a retail investor, if you’re looking to invest in NSE unlisted shares, count on expert brokers at Stockify, India’s best online stock broking platform. The brokers will guide you throughout the trading and make it a seamless process. You can get relevant information about the company, like EBITDA, EPS Growth, and other key performance indicators. Connect with the brokers today.
