The leaders of this Misl used to carry the blue nishans (the flags) of the Sikh army during the battles; hence their name become Nishanwalia.[6][7] The misl which was responsible for bearing the Nishan Sahib was the Nishanwalia Misl, named after this role.[8] The Nishanwalia Misl also was responsible for appointing the flag-bearers for the other misls.[8] The role assigned to carry the flag in procession was considered an honourable one.[8]
Dasaundha Singh, son of Chowdhry Sahib Rai Shergill, of village Mansurwala (near Kot Issa Khan) was the first chief of this Misl.[9]
The Nishanwalia Misl had strength of twelve thousand soldiers; by 1765, it had captured Ambala, Shahbad-Markanda, Sarai Lashkari Khan, Doraha, Amloh, Zira, Singhanwala and some area around Sahnewal too; Dasaundha Singh died in a battle against Zabita Khan in 1767; he was succeeded by his brother Sangat Singh; Sangat Singh shifted his headquarters from Ambala to Zira where he died in 1774.[10]