Tata Motors Differential Voting Rights (DVR) surged almost 4 per cent, after the instrument is to be included in the Nifty with effect from April 1, 2016.

IISL in a release had revamped a number of companies in the Nifty, Mid Cap Nifty and Small Cap indices managed on behalf of the NSE.

The basic difference between ordinary shares and DVR Shares is with regards to the voting rights. Also, sometimes DVR carry higher dividend then normal shares. The concept of DVR has hardly caught on in India.

Except Tata Motors which issued DVRs way back in 2008, we have not had any DVRs being issued thus far.
A few of the companies that have issued DVRs include Gujarat NRE Coke and Jain Irrigation. DVRs tend to quote lower than equity shares. Take the example of the Tata Motors. While the DVRs are quoted at Rs 250, the shares are quoted at Rs 317. Generally, both of them tend to move in tandem.

When the equity shares move up, the DVRs also move higher. The difference in the price largely comes on account of the fewer voting rights that the latter enjoys.

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