National Securities Depository Limited
National Securities Depository Limited (NSDL) is an Indian central securities depository under the jurisdiction of Securities and Exchange Board of India, based in Mumbai.[1] It was incorporated in 1995 as the first electronic securities depository in India with national coverage. It was formally inaugurated on November 8, 1996.[2]
| File:National Securities Depository logo.svg | |
| Industry | Depository Services |
|---|---|
| Founded | 1996 |
| Headquarters | Mumbai, Maharashtra, India |
Key people | G. V. Nageswara Rao, (MD & CEO) |
| Products | demat account, transfer and settlement of securities |
| Website | www |
NSDL provides bouquet of services to investors, stock brokers, custodians, issuer companies etc. through its nation wide network of Depository Participants or DPs and digital platforms.
HistoryEdit
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.
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. It continues to provide world class digital services to different stakeholders in securities market.
Company structureEdit
NSDL Group comprises National Securities Depository Limited (NSDL), NSDL Database Management Limited (NDML) and NSDL Payments Bank Limited respectively. NDML and NSDL Payments Bank are two subsidiary companies of National Security Depository Limited (abbreviated as NSDL). It provides services related to demat of securities, transfer and settlement of securities in Indian Securities Market.
NSDL e-Governance Infrastructure Limited is a separate company.[3] It offers services related to issuance of PAN cards and also acts as central recork-keeping agency for National Pension System (NPS).
NSDL Facts & FiguresEdit
As of July 31, 2021
NSDL has more than 2.28 Crore demat accounts as on July 31, 2021. These demat account holders belong to 99.19% of all pin codes in India. Number of certificates eliminated (approx.) is 5,258 Crore. Number of companies in which more than 75% of shares are in demat is 15,081. The average number of accounts opened per day since November 1996 is 4,186.
It contributes to majority of the settlement in the Indian securities markets and has 90% share in total value of assets held in demat form in India.
ReferencesEdit
- ↑ "NSDL". NSDL. Retrieved 26 August 2021.
- ↑ https://nsdl.co.in/about/milestone.php
- ↑ https://www.egov-nsdl.co.in/