National Securities Depository Limited
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| Public sector depository | |
| Founded | 8 November 1996 |
| Headquarters | Mumbai, India |
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Key people
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G.V. Nageswara Rao, Managing Director & CEO |
| Website | www.nsdl.co.in |
National Securities Depository Limited (NSDL) is an Indian central securities depository based in Mumbai. It was established on 8 November 1996 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 .
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 establish infrastructure based on international standards that handles most of the securities held and settled in de-materialised form in the Indian capital markets.
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.
NSDL is promoted by Industrial Development Bank of India Limited (IDBI) - the largest development bank of India, Unit Trust of India (now, Administrator of the Specified Undertaking of the Unit Trust of India) and (NSE) - the largest stock exchange in India. Some of the prominent banks in the country have taken a stake in NSDL.
Other Shareholders
NSDL Group comprises National Securities Depository Limited (NSDL), NSDL Database Management Limited (NDML) and NSDL e-Governance Infrastructure Limited.
NSDL e-Gov was originally set up as a Depository in 1995.
Further, NSDL also has a subsidiary company NSDL Database Management Limited.
As on January 31, 2016
At present the company is associated with Dr. Babasaheb Ambedkar Vaidyakiya Pratishthan (BAVP), Aurangabad; Borderless World Foundation (BWF), Pune and Nana Palkar Smruti Samiti (NPSS), Mumbai for providing financial assistance for various CSR projects. Under CSR, company supported Borderless World Foundation's Kashmir project Kashmir Life Line which is the first critical care emergency medical service in Jammu and Kashmir State.
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