National Securities Depository Limited


National Securities Depository Limited
National Securities Depository Limited
Type Private
Industry Business Services
Founded 2003
Headquarters Mumbai, India [1]
Key people Gagan Rai, Managing Director & CEO [2]
Products Futures exchange
Website nsdl.co.in

National Securities Depository Limited (NSDL), is the first central securities depository in India based in Mumbai.[3] It is promoted by institutions of national stature responsible for the economic development of India and has established a national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market.[4]

Contents

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.[citation needed]

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.[5] Some of the prominent banks in the country have taken a stake in NSDL.

Other Shareholders

NSDL Facts & Figures

As on March 31, 2010

  • Number of certificates eliminated (Approx.) : 702 Crore
  • Number of companies in which more than 75% shares are dematted : 2670
  • Average number of accounts opened per day since November 1996 : 3646
  • Presence of demat account holders in the country : 80% of all pin codes in the country

See also

  • Central Depository Services Limited

References

External links


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