National Securities Depository Limited
| File:National Securities Depository logo.svg | |
| Company type | 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]
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
- Axis Bank Limited
- State Bank of India
- Oriental Bank of Commerce
- Citibank NA
- Standard Chartered Bank
- HDFC Bank Limited
- The Hongkong and Shanghai Banking Corporation Limited
- Deutsche Bank
- Dena Bank
- Canara Bank
- Union Bank of India
NSDL Facts & Figures
As on June 30, 2014
- Number of certificates eliminated (Approx.) : 1,653 Crore
- Investor's Accounts : 1, 31, 16, 821
- Number of companies in which more than 75% shares are dematted : 12,531
- Average number of accounts opened per day since November 1996 : 3,573
- DP Service Centers : 14, 433
- Presence of Demat account holders in the country : 86% of all pincodes in the country
References
- ^ "DDA scam: Were PAN cards forged?". The Times Of India. 24 February 2009.
- ^ 16 Jun, 2008, 08.50PM IST,PTI (16 June 2008). "NSDL to conduct investor awareness seminars - The Economic Times". Economictimes.indiatimes.com. Retrieved 12 February 2011.
{{cite news}}: CS1 maint: multiple names: authors list (link) CS1 maint: numeric names: authors list (link) - ^ "NSDL". NSDL. Retrieved 12 February 2011.
- ^ https://nsdl.co.in/about/milestone.php
- ^ "PL > FAQ >> Introduction to Depository and Demat". Plindia.com. Retrieved 12 February 2011.
- ^ "NSDL demat accounts cross 1-cr mark". The Financial Express. 20 August 2009. Retrieved 7 October 2013.
- ^ "Promoters / Shareholders". nsdl.co.in. Retrieved 20 January 2009.
External links