Mumbai, March 22 -- In a significant step towards the potential listing of India's largest bourse, the National Stock Exchange of India Ltd will lift a key hurdle that stood in the way of faster transfers of its shares.

The stock exchange has informed its shareholders that the existing process for transferring its shares will be lifted on Monday, implying that NSE shares can be credited to a buyer's account more expeditiously than in the current 2-4 months.

NSE's move is in line with a 14 October circular by the Securities and Exchange Board of India specifying shareholding rules for market infrastructure institutions, including on share transfers and designating depositories for transfer of shareholding. This was to be implemented in J...