National Securities Depository Limited

National Securities Depository Limited
Private
Founded November 1996
Headquarters Mumbai, India [1]
Key people
 G.V. Nageswara Rao, Managing Director & CEO [2]
Website www.nsdl.co.in

National Securities Depository Limited (NSDL) is an Indian central securities depository based in Mumbai.[3] It was established in 1995 as the first electronic securities depository in India with national coverage based on a suggestion by a national institution responsible for the economic development of India .[4]

It has established a national infrastructure using international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market.[5]

History

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 enactment of Depositories Act in August 1996 paved the way for establishment of National Securities Depository Limited (NSDL), the first depository in India. It went on to established infrastructure based on international standards that handles most of the securities held and settled in de-materialised form in the Indian capital markets.

NSDL has stated it aims are to ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimise risk and reduce costs. NSDL plays a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry.

In the depository system, 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 certificates. In August 2009, number of Demat accounts held with NSDL crossed one crore.[6]

Promoters / shareholders

NSDL is promoted by Industrial Development Bank of India Limited (IDBI) - the largest development bank of India, Unit Trust of India (UTI) - the largest mutual fund in India and National Stock Exchange of India Limited (NSE) - the largest stock exchange in India.[7] Some of the prominent banks in the country have taken a stake in NSDL.

Other Shareholders

NSDL e-Governance Infrastructure Limited (NSDL e-Gov)

NSDL e-Gov was originally setup as a Depository in 1995 and has over the years used its inherent strengths, project management capabilities & technology expertise to deliver state of the art e-Governance solutions which has helped Governments to identify and clear bottlenecks, promote transparency, reduce service delivery costs and deliver public services efficiently. The solutions have efficiently made use of information and communication technologies as a tool for delivering public services and benefits to the society at large.

NSDL e-Gov has established state of the art e-Governance projects of national importance. For details visit [8]

Further, NSDL also has a subsidiary company NSDL Database Management Limited.

NSDL Facts & Figures

As on June 30, 2014

References

  1. ↑ "DDA scam: Were PAN cards forged?". The Times Of India. 24 February 2009.
  2. ↑ 16 Jun, 2008, 08.50PM IST,PTI (2008-06-16). "NSDL to conduct investor awareness seminars - The Economic Times". Economictimes.indiatimes.com. Retrieved 2011-02-12.
  3. ↑ "NSDL". NSDL. Retrieved 2011-02-12.
  4. ↑ https://nsdl.co.in/about/milestone.php
  5. ↑ "PL > FAQ >> Introduction to Depository and Demat". Plindia.com. Retrieved 2011-02-12.
  6. ↑ "NSDL demat accounts cross 1-cr mark". The Financial Express. 20 August 2009. Retrieved 7 October 2013.
  7. ↑ "Promoters / Shareholders". nsdl.co.in. Retrieved 2009-01-20.
  8. ↑ https://www.egov-nsdl.co.in

External links