10 Simple (But Important) Things To Remember About National Securities Depository Limited
National Securities Depository Limited (NSDL) is an Indian central securities depository under the jurisdiction of the Securities and Exchange Board of India, based in Mumbai. It was incorporated in 1995 as the first electronic securities depository in India with national coverage. It was formally inaugurated on November 8, 1996. NSDL provides a bouquet of services to investors, stockbrokers, custodians, issuer companies etc. through its nationwide network of Depository Participants or DPs and digital platforms.
Although India had a vibrant capital market that 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 promulgation of the Depositories ordinance in 1995 paved the way for the establishment of the National Securities Depository Limited (NSDL), the first depository in India.
Now, NSDL is one of the largest Depositories in the World. It has established a state-of-the-art infrastructure that handles most of the securities held and settled in dematerialized form in the Indian securities markets. 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 physical certificates.
NSDL introduced the concept of 'Demat' to India. In less than 8 years of its existence, NSDL enabled India securities markets to implement T+2 settlement. It continues to provide world-class digital services to different stakeholders in the securities market.
Company structure: NSDL Group comprises National Securities Depository Limited (NSDL), NSDL Database Management Limited (NDML) and NSDL Payments Bank Limited respectively.
NDML and NSDL Payments Bank are two subsidiary companies of National Security Depository Limited (abbreviated as NSDL). It provides services related to Demat of securities, transfer and settlement of securities in the Indian Securities Market. NSDL e-Governance Infrastructure Limited is a separate company.
It offers services related to the issuance of PAN cards and also acts as a central recork-keeping agency for the National Pension System (NPS).
NSDL Facts & Figures - As of July 31, 2021 - NSDL has more than 2.28 Crore Demat accounts as of July 31, 2021. These Demat account holders belong to 99.19% of all pin codes in India. The number of certificates eliminated (approx.) is 5,258 Crore. The number of companies in which more than 75% of shares are in Demat is 15,081.
The average number of accounts opened per day since November 1996 is 4,186. It contributes to the majority of the settlement in the Indian securities markets and has a 90% share in the total value of assets held in Demat form in India.
- May 2021 : Value of securities held in dematerialized form at NSDL crosses ₹ 250 Lakh crore
- March 2021 :Launch of Digital Commercial Paper Issuance process
November 2020 :Value of securities held in dematerialized form at NSDL crosses ₹ 200 Lakh crore
June 2020 :Demat accounts cross 2 crore
Launch of NSDL Payments Bank
Launch of Digital Loan Against Shares facility for bank DPs.
June 2017 :Awarded ‘CSD of the Year’ at The Asian Banker Financial Markets Awards
November 2016 :NSDL completes two decades of depository operations
September 2016 :Demat accounts cross 1.5 crore
August 2015 :NSDL receives the Payments Bank License
March 2015 :Launch of Consolidated Accounts Statement [CAS]
June 2014 :Value of securities held in dematerialized form at NSDL crosses ₹ 100 Lakh crore [US $1.6 Trillion]
June 2014:Launch of FPI regime
October 2012:Launch of NSDL e-Signer
January 2012:Launch of NSDL e-Voting System
January 2012:Launch of KYC Registration System by NSDL's subsidiary NDML
February 2011:NSDL appointed as Registrar for UID
December 2010:NSDL hosts 14th Asia-Pacific Central Securities Depository Group (ACG) Meeting
December 2010:Launch of New Depository SystemMarch 2010:Facility for conversion of mutual fund units represented by Statement of Account (SoA) into dematerialised form
December 2009:Launch of SPICE (Submission of Power of attorney based Instructions for Clients Electronically) on SPEED-e / IDeAS
November 2009:NSDL launches facility for delivery of shares using mobile phones
September 2009:Launch of DIRECT (Direct Ideas REgistration of Client accounT) at NSDL upon activation of Client accounts
August 2009:Demat Accounts cross one crore
August 2008:Launch of Central Recordkeeping Agency (for National Pension System)
May 2008:NSDL and Japan Securities Depository Center sign Information Sharing and Collaboration Pact
April 2008:NSDL and National Depository Center (Russia) sign Information Sharing and Collaboration Pact
February 2008:NSDL and Euroclear (Belgium) sign Information Sharing and Collaboration Pact
September 2007:Value of securities held in dematerialised form at NSDL crosses US$ 1 trillion
September 2007:Launch of SMS alert facility for investors
June 2007:NSDL and DTCC (US Depository) sign Information Sharing and Collaboration Pact
January 2007:NSDL and TDCC (Taiwan Depository) sign Information Sharing and Collaboration Pact
November 2006:NSDL completes a decade of depository operations
January 2006 :Launch of National Skills Registry by NDML
July 2005:Launch of Tax Information Network - PAN Ledger
January 2005:Launch of online upload of Central Excise challan data
October 2004:Intraday production shifting to Disaster Recovery Site
June 2004:Incorporation of NSDL Database Management Limited (NDML) - wholly owned subsidiary company of NSDL
June 2004:Launch of Online Tax Accounting System (OLTAS)
June 2004:Launch of PAN card services
January 2004:Launch of Tax Information Network (TIN)
January 2004:Launch of IDeAS
November 2003:Introduction of demat of Warehouse Receipts
November 2003:Launch of Market Participants and Investors Database (MAPIN)
October 2003:Demat Accounts cross 6 million
April 2003:Introduction of T+2 Rolling Settlement
December 2002:Demat Accounts cross 5 million
November 2002:Launch of STEADY - An STP initiative by NSDL
April 2002:Introduction of T+3 Rolling Settlement
September 2001:NSDL launches SPEED-e
July 2001:Introduction of T+5 Rolling Settlement and Uniform Settlement Cycle
June 2000:98% settlement in demat form
June 2000:Commencement of Demat of Debt Instruments
May 2000:Demat accounts with NSDL cross 2.5 mn
February 2000:NSDL launches internet based service - SPEED - for CMs
May 1999:NSDL launches NCFM - Depository Operations Module
January 1999:Commencement of compulsory trading for retail investor
December 1998:Introduction of Demat of Government Securities
December 1998:Establishment of NSDL branches at Chennai, Delhi & Kolkata
November 1998:Demat accounts with NSDL cross 100,000
April 1998:Demat delivery in physical segment at NSE and BSE
March 1998:Value of securities held in dematerialised form at NSDL crosses US$ 5 bn.
January 1998:Compulsory demat trading for Institutional investors
December 1997:Commencement of Demat trading at BSE
June 1997:Value of securities held in dematerialised form at NSDL crosses US$ 1 bn.
December 1996:Commencement of Demat trading at NSE
November 1996:NSDL Inauguration
August 1996 : Enactment of Depositories Act
December 1995 : NSDL Incorporation
September 1995 : Promulgation of Depositories Ordinance
Is NSDL a government company?
(NSDL) are both government registered share depositories in India. Share depositories hold shares in an electronic form. ... CDSL and NSDL are to shares what banks are to cash and fixed deposits.
What is the role of NSDL?
NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. At NSDL, we play a central role in developing products and services that will continue to nurture the growing needs of the financial services industry.
Is NSDL public or private?
NSDL India is not a Government-owned company. It is a privately held and professionally managed company that is authorised by the Government of India to offer depository services in India. NSDL is planning to go public in near future. NSDL was promoted by the Nation Stock Exchange Ltd (NSE) in 1996.
Which is better CDSL or NSDL?
In terms of services to investors, there is no key difference between having a demat account with a DP registered either with NSDL or CDSL. Both are regularised by the government and provide similar services.
Is NSDL safe?
NSDL is one of the two government authorised depositories in India. It is governed by the Depositories Act, 1996. NSDL is a safe, reliable and well-regulated depository. The demat account with NSDL is safe and convenient for online trading and investment.
What is NSDL in PAN card?
NSDL is the National Securities Depository Limited which was established in 1996. NSDL e-Governance Infrastructure Limited was originally set up as a Depository in 1995. On behalf of the Income Tax Department, the Tax Information Network (TIN) was set up as a repository of nationwide Tax related information.
How do I buy shares in NSDL?
You purchase securities in any of the stock exchanges connected to NSDL through a broker of your choice and make payment to your broker. Make sure you tell your broker you want only demat shares. Broker arranges payment to clearing corporation/ clearing house of the stock exchange.
Is Zerodha account NSDL or CDSL?
Zerodha is a depository participant of the CDSL depository. This means Zerodha works as a service agent for a demat account which is held by CDSL, one of two central depositories.
How do I know if CDSL or NSDL?
The Demat account has a 16-digit numeric character in case of CDSL, whereas in case of NSDL, the Demat account number starts with “IN” followed by a 14-digit numeric code. An example of a Demat account number is CDSL can be 01234567890987654 where an instance of a Demat account number is NSDL can be IN01234567890987.