Overview

NSDL or National Securities Depository Limited is a Depository or financial entity that has been established to hold all securities as tangible or non-physical certificates. NSDL was established in August 1996, and it stands as one of the largest depositories in the world, managing most of the securities held and settled in dematerialized form within the Indian capital market. 

Despite India’s dynamic capital market, which spans over a century, the reliance on paper-based settlement methods posed significant challenges. The implementation of the Depositories Act in August 1996 laid the groundwork for NSDL’s establishment.

 As a SEBI-registered Market Infrastructure Institution (MII), NSDL has been instrumental in shaping India’s capital markets, pioneering the concept of dematerialization of securities. NSDL rolls out T+0 Settlement India, the first Nation to introduce T+0 Settlement (Beta Implementation) in April 2002, T+3, April 2003, T+2, April 2023, T+1, April 2024, T+0.

Using innovative and advanced technology systems, NSDL works to support the investors and brokers in the capital market in India. NSDL aims at ensuring the safety and providing the soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs.

NSDL play a central role in developing products and services that will continue to nurture the growing needs of the financial services industry and capital markets. In the depository, securities are held in depository accounts, which are like holding funds in bank accounts. 

Transfer of ownership of securities is done through simple account transfers and this helps in mitigating all the risks and hassles normally associated with paperwork. Consequently, the cost involved in transacting in a depository is considerably lower as compared to transacting in certificates.

NSDL has established a strong leadership position in the Foreign Portfolio Investors (FPI) business in India. Currently, around 11,200 FPIs are registered with NSDL which constitutes 99.99% market share of the FPI holdings.

The plus point for NSDL is that IDBI Bank Ltd. hold more than 26% in the NSDL, and along with it National Stock Exchange (NSE) holds more than 24% in NSDL. Some other holders include HDFC Bank Ltd, which holds more than 8.95% and the Unit Trust of India with 6.83% stake.

Services Offerings

Basic Services: NSDL provides various services to its investors, banks, brokers and other security issuers participating in the Indian financial market. Any investor, broker or intermediary who wants to avail services of NSDL, is required to open a depository account with DPs.

Account Maintenance

Dematerialisation

Rematerialisation

Market Transfers

Off-Market Transfer

Inter-Depository Transfer

Margin Pledge

Transmission / Nomination

Corporate Action

Value-added Services: NSDL provides various other services like hypothecation of securities, pledges, automatic delivery of securities to clearing corporations, distribution of various cash and non-cash benefits, stock lending, demat of NSC/KVP, demat of warehouse receipts, etc. Some of the services provided are as under:

Pledge or Hypothecation of securities

Automatic Delivery Out Instructions

Dividend Distribution

Lending and borrowing

Public Issue 

SMS Alert

NSDL CAS (Consolidated Account Statement)

Board of Directors

• Mr. Parveen Kumar Gupta Former MD (Retail & Digital Banking) of State Bank of India

• Dr. Madhu Sudan Sahoo Advocate, Dr. Sahoo Regulatory Chambers

• Ms. Sripriya Kumar (Partner, SPR & Co., Chartered Accountants)

• Mr. Sriram Krishnan (Chief Business Development Officer-NSEIL

• Prof. Rajat Moona (Director - Indian Institute of Technology Gandhinagar)

• Mr. Shailendra Nadkarni Executive Director, IDBI Bank Limited

• Ms. Padmaja Chunduru MD & CEO, National Securities Depository Limited

Capital Markets in India

Indian economy contributes at large in the world economy and hence the role of capital markets or the share markets of India increased which form a considerable portion of the world economy. The capital market is very important to the financial system because due to that the economy runs at a faster pace because financial markets contribute very highly to the economy.

India, as one of the fastest growing and largest emerging economies in the world, thus has a huge potential to leverage its capital markets to achieve its ambitious target of reaching a $7 trillion economy by 2030.

Capital markets are important for capital formation and for rapid economic and technological development. Adequate capital formation is necessary. 

The importance of the capital market in  economic  development is explained below:

• Mobilization Of Savings and Acceleration of Capital Formation

• Raising Long-Term Capital

• Promotion Of Industrial Growth

• Ready And Continuous Market

• Technical Assistance

• Reliable Guide to Performance

• Proper Channelization of Funds

• Provision Of a Variety of Services

• Development Of Backward Areas

Some of the benefits to be availed from NSDL services are:

Delivery assurance: Demat accounts maintained with NSDL allow investors to check and verify the assets held in electronic form in their Demat account and any purchase or sale of securities.

No risk: As NSDL maintains securities electronically in Demat accounts, there is no risk of loss, destruction, theft, or mutilation of certificates.

No stamp duty: Securities that are transferred via depositories do not attract any stamp duty, thereby saving the cost of investment to the investors.

Easy and Quick transfer and registration: As soon as security is transferred into an investor’s account, he/she become its legal owner. This eliminates the lengthy process and risk associated with approaching the company registrar for ownership transfer.

Reduced Paperwork: With the Demat accounts, a lot of paperwork gets reduced and this results in further reduction of brokerage charges to the investors. It also reduces the need to maintain various types of documents that are related to securities transactions of buying and selling.

Account statements: Investors can regularly inspect or check the account statements with details of transactions done by the investors as well as the holdings in their accounts.

Easy transmission: Securities held in demat accounts can be easily transmitted by checking relevant documentation to the depository participants. 

IPO access: Investors are always eager for IPOs and NSDL helps them to get access to IPOs on the stock market through the NSDL portal. This helps in a stress-free investment process for the IPO to the investors.

Dividend Details

NSDL has declared a dividend of Rs. 1 per equity share, of the face value of Rs. 2 each, for the financial year ending March 31, 2024

NSDL IPO Plans

NSDL filed the Draft Red Herring Prospectus (DRHP) with the SEBI. This development marks a crucial step towards public offering, reflecting their commitment to growth. SEBI approval for the DRHP is awaited.

NSDL Share Price and Investment Insights:

For NSDL share price interested investors, it's significant to monitor the NSDL share price today and NSDL share price live updates. The NSDL share price chart can give you a detailed price history about price movements so that you can make informed decisions. Moreover, you can monitor the NSDL share price in the NSE NSDL share price listings for updated information. Investors can also check the NSDL share price today live for current data on price movement.

If you are thinking of investing, always check the NSDL share price NSE for the most recent and accurate trading information, or visit the NSDL share list to view how NSDL shares are performing in the market.

NSDL Subsidiary and Associate Companies

NSDL Database Management Limited - Subsidiary

NSDL Payments Bank Limited - Subsidiary

India International Bullion Holding IFSC Limited - Associate

Peer Details

Central Depository Services Limited (CDSL) is a peer company operating in the same business line.

Milestones of NSE

March 2024: Launch of Beta version of T + 0 rolling settlement cycle in the equity market

March 2024: Market ka Eklavya crosses 1,000+ programs

February 2024: The value of securities held in the dematerialized form at NSDL crosses $5 trillion

January 2024: NSDL gets GLEIF accreditation for Legal Entity Identifier (LEI) issuance in India