National Securities Depository Limited
TypeSemi Government,
subsidiary of National Stock Exchange(NSE) (24% majority holdings)[1]
BSE: 544021
ISININE004A01022
IndustryCentral securities depository
Founded1996 (1996)
HeadquartersMumbai, Maharashtra, India
Key people
Padmaja Chunduru (MD & CEO)
ProductsDemat account, Transfer and Settlement of Securities
ServicesDepository services
Websitensdl.co.in

National Securities Depository Limited (NSDL) is an Indian central securities depository, based in Mumbai. It was established in August 1996 as the first electronic securities depository in India with national coverage. It was established based on a suggestion by a national institution responsible for the economic development of India. Its demat accounts now hold assets worth $4 trillion.[2][3][4][5]

NSDL provides services to investors, stock brokers, custodians, issuer companies, Saving account current account Business corresponding etc. through its nationwide network of Depository Participants or DPs and digital platforms.

History

National Securities Depository Limited (NSDL) is an Indian central securities depository under the jurisdiction of Ministry of Finance, Government of India based in Mumbai. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL. It was established in 1996 as the first electronic securities depository in India with national coverage.

Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems such as bad delivery and delayed transfer of title. The promulgation of the Depositories ordinance in 1995 paved the way for the establishment of National Securities Depository Limited (NSDL), the first depository in India. Now, NSDL is one of the largest Depositories in the World. It has established a state-of-the-art infrastructure that handles most of the securities held and settled in de-materialized form in the Indian securities markets.[5]

Securities are held in depository accounts, which are similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in physical certificates.

NSDL introduced the concept of 'Demat' to India. In less than 8 years of its existence, NSDL enabled India securities markets to implement T+2 settlement. Indian markets are now implementing T+1 settlement in phased manner.[6]

Company structure

NSDL Group comprises National Securities Depository Limited (abbreviated as NSDL), NSDL Database Management Limited (NDML) and NSDL Payments Bank Limited. NDML and NSDL Payments Bank are two subsidiary companies of NSDL. It provides services related to demat of securities, transfer and settlement of securities in Indian Securities Market.

Protean eGov Technologies Limited (earlier known as NSDL e-Governance Infrastructure Limited) was a former subsidiary.[3] It works on Digital Public Infrastructure and Open Source software as well as offers services related to issuance of PAN cards and also acts as central record-keeping agency for National Pension System (NPS).

NSDL Facts & Figures

NSDL has more than 2.80 Crore demat accounts as on June 30, 2022. The market share of NSDL in value of demat assets is more than 89%. NSDL demat accountholders are present in more than 99% of pin codes in India and 189 countries across the globe. It contributes to majority of the settlement in the Indian securities markets and has more than 89% share in the total value of assets held in demat form in India.

See also

References

  1. ↑ https://www.nseindia.com/nse-investments
  2. ↑ Desk, B. Q. (23 October 2021). "Assets In NSDL Demat Accounts Now Worth $4 Trillion". BloombergQuint. Retrieved 17 January 2022.
  3. 1 2 "NSDL e-Governance Infrastructure Limited". www.egov-nsdl.co.in. Retrieved 17 January 2022.
  4. ↑ "Sebi.gov.in Depositories". SEBI.
  5. 1 2 "What is NSDL service?". Business Insider. Retrieved 17 January 2022.
  6. ↑ Jaiswar, Pooja Sitaram (28 January 2023). "Now, settlement in equity shares to take place in 1 day. How does T+1 helps?". mint. Retrieved 4 August 2023.
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