Lombard loans on the NSE.
Private credit against National Stock Exchange of India-listed shares — pledged, not sold.
A Lombard loan against NSE-listed shares is credit secured by a pledge of equity listed on the National Stock Exchange of India. The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment.
- Facilities are arranged against equity listed on the National Stock Exchange of India (NSE), Mumbai.
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in INR or cross-currency.
- Structured under SEBI, with disclosure from 5%.
The venue
India's largest equity exchange by trading volume. Dual-listing with BSE is universal among large-capitalisation issuers; choice of execution venue is a tactical rather than structural decision in most cases.
Regulator and disclosure
The National Stock Exchange of India operates under Securities and Exchange Board of India (SEBI). SEBI (SAST) Regulations: disclosure of acquisition required at 5%; continuing disclosure at every 2% change above. A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
Structuring a facility here
Lombard facilities against NSE-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in INR or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread.
| Exchange | National Stock Exchange of India (NSE) |
|---|---|
| City · Country | Mumbai · India |
| Regulator | Securities and Exchange Board of India (SEBI) |
| Disclosure | From 5% |
| Principal indices | Nifty 50, Nifty Next 50, Nifty 500 |
| Segments | Capital Market segment (Main Board); SME segment (Emerge); Social Stock Exchange |
| Currency · Tenor | INR · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Financing a position listed on the NSE?
Request terms →See also the country overview: Lombard loans in India.
Other exchanges in the region.
On this market, specifically.
Liquidity and the index
The National Stock Exchange is India’s largest venue by trading volume, referenced through the Nifty 50 and the wider Nifty Next 50 and Nifty 500. For most large issuers the NSE is the primary pool of cash-equity liquidity, even though the same shares are dual-listed on the BSE — which makes a Nifty 50 constituent among the more comfortably-financed collateral in the region. Deep free floats and high daily turnover in the index names support a fuller advance rate; the Emerge SME segment, by contrast, carries thinner, more volatile lines that a Lombard loan approaches with markedly more caution.
Structuring notes
On the NSE the structuring considerations mirror the national regime: the SEBI Takeover Regulations, with their open-offer and creep mechanics, and the requirement that pledges over promoter holdings be disclosed. Because the NSE typically offers the deeper order book, valuation and any enforcement are usually referenced to it even for lines also quoted on the BSE. The pledged shares are held with a qualified custodian, drawings are arranged in INR or, subject to exchange control, cross-currency, and the facility is documented so that the grant of security and the margin mechanics sit clearly on the pledge side of the line rather than as an acquisition of voting rights.