Ownership Trends in NSE-listed Universe of Stocks 31Mar2025
Shareholding of Promoter and Non-promoters
(The views expressed here are for information purposes only and should not be construed as a
recommendation or investment advice. While the author is a CFA Charterholder
with nearly 25 years of experience in financial markets, this content
is intended to share general insights and does not constitute financial
guidance. Please consult your financial
adviser before taking any investment decision. Safe to assume the author
has a vested
interest in stocks / investments discussed if any.)
While the media often highlights individual instances of promoters selling their stakes—particularly in a bullish market—it’s important to look at the broader picture.
Promoters are typically the original founders or major stakeholders in a company. In India, promoters usually have a large shareholding, and in many cases even a controlling interest in the company. It's true many promoters have been selling off part of their holdings in recent years.
The promoter stake sale is often highlighted in the media and by market participants. The underlying narrative is that the stock markets in India have been performing well, particularly in recent years, leading to rising valuations.
The promoter stake sale is often highlighted in the media and by market participants. The underlying narrative is that the stock markets in India have been performing well, particularly in recent years, leading to rising valuations.
As a result, promoters are taking advantage of this by selling their holdings to "encash" or monetise the appreciation in stock prices.
When these sales happen, there’s a lot of media focus on the flow of selling—which refers to the volume and frequency of shares being sold by promoters.They often portray it as a sign of confidence (or lack thereof) in the company’s future prospects.
However, the key point being made here is that while the media and analysts focus on the selling activity, they often ignore the total stock still held by promoters. Even after selling off part of their holdings, many promoters still retain a substantial stake in the company.
The total promoter holding—that is, the remaining percentage of stock that the promoters still control—may still be significant, and it’s essential to look at that broader picture.
When these sales happen, there’s a lot of media focus on the flow of selling—which refers to the volume and frequency of shares being sold by promoters.They often portray it as a sign of confidence (or lack thereof) in the company’s future prospects.
However, the key point being made here is that while the media and analysts focus on the selling activity, they often ignore the total stock still held by promoters. Even after selling off part of their holdings, many promoters still retain a substantial stake in the company.
The total promoter holding—that is, the remaining percentage of stock that the promoters still control—may still be significant, and it’s essential to look at that broader picture.
In other words, while the reduction in stake might seem like a lack of confidence or an attempt to capitalise on the market highs, the promoters may still believe in the long-term potential of the company and hold on to a large portion of their equity.
So, the focus on "how much is being sold" might not fully capture the complete picture of their ongoing commitment to the company.
Despite various fluctuations in the market, total promoter ownership has largely remained steady over the past five years, hovering around the 50 per cent mark.
In this blog, we will delve into the factors behind this stability using India ownership tracker data from National Stock Exchange of India Ltd (NSE).
But one clear trend though is while the total promoter stake remains stable, the share of foreign promoter ownership decreased sharply from 11.1 per cent at the end of Mar2020 to 8.1 per cent in Mar2025.
The promoter ownership in NSE-listed universe of stocks has declined for the third quarter in a row to 50.1 per cent as at the end of Mar2025. The data presented in this Section 1 are for all stocks listed on NSE.
As of 31Mar2025: Of the promoters: Indian promoters' share is 32.5 per cent; while that of Government of India and foreign ownership is 9.5 and 8.1 per cent respectively (see table below).
Of the non-promoters, FPI ownership is 17.5 per cent as at the end of Mar2025; domestic mutual funds (DMFs) share is 10.4 per cent; banks and insurance 5.6 per cent; individual investors 9.5 per cent and others 6.9 per cent. Other investors consist of other institutions; non-promoter corporate and others.
A dip in direct ownership of individual investors to 9.5% in the listed universe; Individuals, both directly and through mutual funds, now own a record-high 18.2% of the market. Our estimates point to a net accretion of over Rs 46 lakh crore to household wealth in Indian equities in the past five fiscal years (between end-Mar2020 and end-Mar2025, with current holding at Rs 74.5 lakh crore. 
1-year, 3-year and 5-year trends of changes in promoter stake:
In the past five years, DMFs ownership increased from 7.9 per cent to 10.4 per cent, as FPIs exited sharply from Indian stock market. FPI ownership declined from 20.8 per cent in Mar2020 to 17.5 per cent in Mar2025.
For FPIs, India is only one of several markets globally. They may have found other markets more attractive from a valuation perspective. Indian stocks continue to remain at elevated valuations, possibly because of higher growth rates and superior profitability of Indian listed universe.
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1 NSE-listed Universe of Stocks:
As of 31Mar2025: Of the promoters: Indian promoters' share is 32.5 per cent; while that of Government of India and foreign ownership is 9.5 and 8.1 per cent respectively (see table below).
Of the non-promoters, FPI ownership is 17.5 per cent as at the end of Mar2025; domestic mutual funds (DMFs) share is 10.4 per cent; banks and insurance 5.6 per cent; individual investors 9.5 per cent and others 6.9 per cent. Other investors consist of other institutions; non-promoter corporate and others.
A dip in direct ownership of individual investors to 9.5% in the listed universe; Individuals, both directly and through mutual funds, now own a record-high 18.2% of the market. Our estimates point to a net accretion of over Rs 46 lakh crore to household wealth in Indian equities in the past five fiscal years (between end-Mar2020 and end-Mar2025, with current holding at Rs 74.5 lakh crore.
Table showing India Ownership Trends in NSE-listed Universe of stocks from Mar2001 to Mar2025: Shareholding of promoters and non-promoters: Data is from NSE Ownership Tracker for Mar2025:
Please click on the image to view better >
1-year, 3-year and 5-year trends of changes in promoter stake:
Changes in Individual investors' stake over the years:
As of Mar2001, Individual investors used to hold a staggering 16.9 per cent of the total ownership in NSE-listed universe. By Mar2005, it fell to 12.9 per cent before declining further to 8.5 per cent by Mar2010.
As of Mar2015, their stake was 8.7 per cent before falling to 8.4 per cent in Mar2020. It has since risen to 9.5 per cent by the end of Mar2025.
The decline in individual investors’ stake in the NSE-listed universe, particularly from 2001 to 2010, is primarily due to the increasing institutionalisation of the market, volatility-driven exits, and the preference for safer investment options.
During the first 15 years of the millennium, foreign portfolio investors dramatically ramped up their ownership stakes in Indian companies.
Between Mar2001 and Mar2015, FPI stake increased dramatically from 8.7 per cent to 22 per cent by Mar2015 (however it has since fallen to 17.5 per cent by Mar2025). The sharp increase in FPI share between Mar 2001 to Mar2015 needs to be correlated with the sharp decrease in individual investors' share in the same period.
However, recent years (post-2020) have seen a rebound in individual participation, fueled by greater market accessibility, digital platforms, and the growing equity culture in India.
As of Mar2015, their stake was 8.7 per cent before falling to 8.4 per cent in Mar2020. It has since risen to 9.5 per cent by the end of Mar2025.
The decline in individual investors’ stake in the NSE-listed universe, particularly from 2001 to 2010, is primarily due to the increasing institutionalisation of the market, volatility-driven exits, and the preference for safer investment options.
During the first 15 years of the millennium, foreign portfolio investors dramatically ramped up their ownership stakes in Indian companies.
Between Mar2001 and Mar2015, FPI stake increased dramatically from 8.7 per cent to 22 per cent by Mar2015 (however it has since fallen to 17.5 per cent by Mar2025). The sharp increase in FPI share between Mar 2001 to Mar2015 needs to be correlated with the sharp decrease in individual investors' share in the same period.
However, recent years (post-2020) have seen a rebound in individual participation, fueled by greater market accessibility, digital platforms, and the growing equity culture in India.
The advent of online trading platforms and demat accounts has made it easier for individual investors to participate in the stock market, especially in the past five years.
However, despite this convenience, many individual investors still prefer other asset classes (like real estate, gold or fixed deposits) due to their perceived safety and lower volatility.
During periods of market downturn, many individual investors tend to exit the market in panic, leading to a temporary reduction in their overall stake.
However, despite this convenience, many individual investors still prefer other asset classes (like real estate, gold or fixed deposits) due to their perceived safety and lower volatility.
During periods of market downturn, many individual investors tend to exit the market in panic, leading to a temporary reduction in their overall stake.
This changing landscape indicates that while individual investors’ ownership has been on the decline for years (except for a brief resurgence between 2020 and 2025), the future could see a more diversified mix of participation, with individual investors gradually regaining some ground in the stock market.
Rise of domestic mutual funds (DMFs):
Rise of domestic mutual funds (DMFs):
In the past five years, DMFs ownership increased from 7.9 per cent to 10.4 per cent, as FPIs exited sharply from Indian stock market. FPI ownership declined from 20.8 per cent in Mar2020 to 17.5 per cent in Mar2025.
For FPIs, India is only one of several markets globally. They may have found other markets more attractive from a valuation perspective. Indian stocks continue to remain at elevated valuations, possibly because of higher growth rates and superior profitability of Indian listed universe.
It may be noted more individual investors now prefer to invest through institutions, like mutual funds, which are a somewhat safer investment avenue especially for novice investors.
The increased share of DMFs in the past five years is an indication of individual retail investors' preference for mutual fund avenue.
Individual investors in India prefer to invest through dollar-cost averaging, through monthly purchases of mutual funds -- making their portfolios immune to the vagaries of markets.
Trends between Mar2001 and Mar2025:
It's surprising to many that individual investors' ownership in the NSE-listed universe has fallen from 16.9 per cent in March 2001 to 9.5 per cent in March 2025 (as shown above).
While market experts often claim that retail investors are making a comeback in Indian stocks, the actual long-term trend tells a different story.
Instead of investing directly in equities, many individual investors have increasingly turned to mutual funds as their preferred route for equity exposure, as highlighted above.
To get a clearer picture, it would be useful to consider not just the direct holdings of retail investors, but also their share in mutual fund investments, as this reflects a significant portion of their equity exposure today.
While market experts often claim that retail investors are making a comeback in Indian stocks, the actual long-term trend tells a different story.
Instead of investing directly in equities, many individual investors have increasingly turned to mutual funds as their preferred route for equity exposure, as highlighted above.
To get a clearer picture, it would be useful to consider not just the direct holdings of retail investors, but also their share in mutual fund investments, as this reflects a significant portion of their equity exposure today.
2. Nifty 50 Index:
While in Section 1 above, we have discussed in the context of all listed stocks, let us see what the data reveal about Nifty 50 companies.
In the Nifty 50 universe, promoter share dropped more sharply—down 57 basis points (100 basis points equal 1 per cent) to 40.6 per cent during Jan-Mar2025 quarter, the lowest in 22 years—mainly due to a decline in government and foreign promoter share.
As of Mar2025, ownerhip share in Nifty 50 stocks:
28.5% Indian promoters
6.8% Government promoter
5.5% Foreign promoters
40.8% total promoters
24.3% FPIs (non promoters)
12.6% DMFs
8.2% banks & insurance
7.9% individual investors
6.2% other investors
59.2% total non-promoters
28.5% Indian promoters
6.8% Government promoter
5.5% Foreign promoters
40.8% total promoters
24.3% FPIs (non promoters)
12.6% DMFs
8.2% banks & insurance
7.9% individual investors
6.2% other investors
59.2% total non-promoters
3. Nifty 500 index:
Total promoter ownership in Nifty 500 stocks is 50.1 percent as on 31Mar2025.
As of Mar2025, ownership share in Nifty 500 stocks:
31.4% Indian promoters
10.6% Government promoter
8.1% Foreign promoters
50.1% total promoters
18.5% FPIs (non promoters)
10.7% DMFs
6.0% banks & insurance
8.6% individual investors
6.1% other investors
49.9% total non-promoters
31.4% Indian promoters
10.6% Government promoter
8.1% Foreign promoters
50.1% total promoters
18.5% FPIs (non promoters)
10.7% DMFs
6.0% banks & insurance
8.6% individual investors
6.1% other investors
49.9% total non-promoters
4. Reasons for changes in ownership
Some high-profile recent promoter stake sale deals include, ITC, Bharti Airtel, Eternal, InterGlobe Aviation (Indigo), PNB Housing Finance, Nuvama Wealth, Paras Defense, PG Electroplast, JSW Infrastructure and Paytm.
As stated recently by UR Bhat of Alphaniti Fintech, many promoters holding large stakes sell their equity stakes in order to diversify their concentrated wealth in a single company they control.
In a recent media interaction, Atul Bhole of Kotak Mutual Fund stated: "The increased supply can be seen as a stabilising force to absorb the flows coming into the capital markets. It is providing incremental avenues to the money managers to invest and keeping the price levels in check at aggregate level."
Foreign promoter selling:
> Singtel sold a stake in Bharti Airtel
> British American Tobacco offloaded stake partially in ITC Ltd
> foreign owners sold stake in Whirlpool India
Govt of India stake sales:
In FY 2024-25, Govt of India pared its stakes partially in Punjab National Bank, Bank of Maharashtra, General Insurance Corp of India, Cochin Shipyard, Hindustan Zinc (but owned by Vedanta group), IOB, Uco Bank and others.
In some cases, Govt of India was forced to sell stakes in order to adhere to SEBI-mandated norms on minimum public shareholding (MPS).
In some cases, Govt of India was forced to sell stakes in order to adhere to SEBI-mandated norms on minimum public shareholding (MPS).
Promoter selling may not be bad always:
Lower promoter holding lifts free float market cap leading to increase in weighting in equity indices.
In some cases, promoter stake sale results in more institutions flocking to the stock. One example is InterGlobe Aviation where promoter Gangwal family has been selling stakes in the airline company.
Post the Gangwal family paring its stake gradually, Indigo share price has risen spectacularly creating massive wealth for minority shareholders. The increase in free float, post promoter stake sale, is one of the reasons for the stock price rise in recent years.
There are a few more such cases in India.
Possible reasons for promoter selling in Indian listed firms:
> High valuations in the last four years may have promoted promoter selling; promoters may be wanting to diversify their assets
> High valuations in the last four years may have promoted promoter selling; promoters may be wanting to diversify their assets
> Foreign promoters selling stakes in Indian listed firms, possibly due to rising Indian valuations and other reasons
> Some may have sold stake to adhere to SEBI's 25 per cent minimum public shareholding norms
> Share buybacks have come down due to capricious government tax policies (share buybacks would help in raising promoter stake)
> QIP or qualified instiutional placement by companies in most cases could result in dilution of promoter stake (India Inc QIP sales were high in recent years)
> HDFC Bank's promoter stake used to be 26 per cent, but after its merger with HDFC Ltd, its promoter stake is now zero
> Some may have sold stake to adhere to SEBI's 25 per cent minimum public shareholding norms
> Share buybacks have come down due to capricious government tax policies (share buybacks would help in raising promoter stake)
> QIP or qualified instiutional placement by companies in most cases could result in dilution of promoter stake (India Inc QIP sales were high in recent years)
> HDFC Bank's promoter stake used to be 26 per cent, but after its merger with HDFC Ltd, its promoter stake is now zero
Promoter buying:
While it's true that some promoters have been selling their stakes in large quantities, it’s also important to note that some insiders, including key executives and management, have been actively buying more shares. This buying activity, especially by those closely involved with the company’s operations, is often seen as a sign of confidence in the business's long-term growth prospects.
When you balance both sides of the equation—the selling by promoters and the buying by insiders—the overall changes in promoter and insider ownership stakes at the aggregate level tend to remain relatively small.
When you balance both sides of the equation—the selling by promoters and the buying by insiders—the overall changes in promoter and insider ownership stakes at the aggregate level tend to remain relatively small.
During the Oct2024-Mar2025 period when Indian stocks fell sharply by 30 to 40 per cent, several Indian promoters increased their stake, through market purchase, taking advantage of decline in their share prices.
Some examples include: Asahi India Glass, Deepak Nitrite, GMR Airports, GNA Axles, Godrej Properties, Indoco Remedices, KCP Ltd, Maharashtra Seamless, Quess Corp, Religare Enterprises, Sobha Ltd, TARC Ltd and West Coast Paper Mills.
As the Indian stock market matures, many promoters are becoming more inclined to diversify their holdings, reducing the concentrated risk of having too much wealth tied to a single company. This also means they might sell shares to raise capital for other investments, personal expenses or to improve corporate governance by allowing more public participation.
5. Summary
The key takeaway is that promoter selling is not necessarily a bad thing. Yes, it may suggest that the promoters are taking profits in a bullish market, but it's also important to consider why they are selling and how much they still hold.
If promoters are still holding a significant stake, it might indicate that they still believe in the company’s potential, even though they are reducing their exposure in the short term.
No doubt some promoters have sold off their stakes very aggressively. But in a big picture sense, such stake sales do not distract from the fact that in India promoters still hold 50 per cent share in total ownership.
Also, from an investor’s perspective, understanding the larger picture (total promoter holding, the reason for the stake reduction and the financial health of the company) is crucial before making decisions.
No doubt some promoters have sold off their stakes very aggressively. But in a big picture sense, such stake sales do not distract from the fact that in India promoters still hold 50 per cent share in total ownership.
Also, from an investor’s perspective, understanding the larger picture (total promoter holding, the reason for the stake reduction and the financial health of the company) is crucial before making decisions.
It's not just about focusing on the sale; it’s about understanding the context and broader strategic moves made by the promoters.
By analysing both the sales and the remaining stake of promoters, investors can better understand the true signal behind such actions. And we should not forget instances where promoters have been increasing their stakes through market purchase.
Domestic institutions, like, mutual funds, pension funds and insurance companies are becoming more dominant in the ownership of listed companies.
India's government pension fund EPFO or Employee Provident Fund Organisation has been investing in Indian stocks for the past 10 years deepening the institutionalisation of equity markets in India.
While there might be short-term fluctuations, the fundamental ownership structure in Indian listed companies has remained fairly stable, with insiders still retaining a significant stake in their respective companies.
This balance also highlights that the actions of individual promoters or insiders don’t always reflect a drastic shift in their long-term commitment to the business.
(the blog is yet to be completed and the same shall be completed in the next one or two hours)
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References and additional data:
tweet thread 09Jul2025 - Promoter stake sale > promoter / insider exit > Promoter selling >
tweet thread 25Feb2025 - promoter buying
NSE India Ownership Tracker - PDF for Jun2025
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Disclosure: I've got a vested interest in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.
Disclaimer: The analysis and
opinion provided here are only for information purposes and should not be construed
as investment advice. Investors should consult their own financial advisers
before making any investments. The author is a CFA Charterholder with a vested
interest in financial markets.
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