National Securities Depository Limited
| 180px | |
| Public sector depository | |
| Founded | November 1996 |
| Headquarters | Mumbai, India [1] |
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Key people
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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 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 .[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]
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 establish 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 pivotal 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 Group
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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 office you 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
- 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
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- ↑ https://nsdl.co.in/about/milestone.php
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- ↑ https://www.egov-nsdl.co.in
