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National Securities Depository Limited

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National Securities Depository Limited
Company typeSemi Government,
subsidiary of National Stock Exchange(NSE) (24% majority holdings)[1]
BSE: 544021
ISININE004A01022
IndustryCentral securities depository
Founded1996; 28 years ago (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.[2] It was established based on a suggestion by a national institution responsible for the economic development of India. At the end of 2023, its demat accounts held assets worth ₹398 Lakh Crore ($4.7 trillion).[3][4][5][6]

NSDL provides services to investors, stock brokers, custodians and issuer companies through its nationwide network of Depository Participants and digital platforms.

History

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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, December 1995 paved the way for establishment of NSDL. It was established in 1995 as the first electronic securities depository in India with national coverage. And started the work in 1996.

Although India had a vibrant capital market which was 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.[6]

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 a phased manner.[7]


Company structure

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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.

NSDL Payments Bank Limited
Company typeSubsidiary
IndustryFinancial services
HeadquartersMumbai, India
Area served
India
Key people
Abhijit Kamalapurkar
(MD & CEO)
Products
ParentNational Securities Depository Limited
Websitensdlbank.com

Protean eGovernance Technologies (earlier known as NSDL e-Governance Infrastructure Limited) was a former subsidiary.[5] 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

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NSDL has more than 2.80 Crore demat accounts as of 30 June 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.[citation needed] 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.[citation needed]

See also

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References

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  1. ^ https://www.nseindia.com/nse-investments [bare URL]
  2. ^ "About Us - NSDL". NSDL. Archived from the original on 13 February 2006. Retrieved 18 January 2024.
  3. ^ "Statistics - NSDL". NSDL. 31 December 2023. Archived from the original on 18 January 2024. Retrieved 18 January 2024.
  4. ^ Desk, B. Q. (23 October 2021). "Assets In NSDL Demat Accounts Now Worth $4 Trillion". BloombergQuint. Retrieved 17 January 2022. {{cite web}}: |last= has generic name (help)
  5. ^ a b "NSDL e-Governance Infrastructure Limited". www.egov-nsdl.co.in. Retrieved 17 January 2022.
  6. ^ a b "What is NSDL service?". Business Insider. Retrieved 17 January 2022.
  7. ^ 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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