- Established: August 1996
- Headquarters: Mumbai, Maharashtra, India
- Key People: Vijay Chandok (Managing Director & CEO)
- Products: Demat accounts, Transfer and Settlement of Securities
- Services: Depository services (holding, settlement, corporate actions, etc.)
- Regulated by: Securities and Exchange Board of India (SEBI)
- Website: www.nsdl.co.in
📌 Purpose and Role of National Securities Depository Limited
NSDL was created to eliminate paper-based share certificates and move towards dematerialization (demat) of securities in India. It serves as India’s first and largest depository, playing a vital role in financial market infrastructure by:
- Holding securities (like stocks, bonds, mutual funds) in electronic form
- Facilitating smooth, secure, and paperless trading and settlement
- Ensuring ownership and transfer records are updated electronically
🛠️ Core Functions
| Function | Details |
|---|---|
| Demat Services | Electronic conversion and holding of physical securities |
| Settlement | Assists in timely settlement of trades in stock exchanges |
| Corporate Action Handling | Dividends, bonuses, rights issues processed automatically |
| Pledging/Unpledging | Allows pledging of shares for loans |
| Nomination & Transmission | Enables appointment of nominee and transmission after investor’s death |
| PAN Services (via Protean) | PAN card issuance and KYC verification (via its arm NSDL e-Gov) |
🧱 How It Works
- Investor opens a Demat Account through a Depository Participant (DP) (like Zerodha, ICICI Direct, etc.)
- The DP interfaces with NSDL, which maintains the master records of securities.
- NSDL facilitates all debit/credit of securities through electronic book entries.
- Investors receive electronic statements, and all share trading is settled through T+1 or T+2 cycles.
🧑💼 Ownership & Structure
NSDL was promoted by prominent institutions, including:
- IDBI Bank
- National Stock Exchange (NSE)
- State Bank of India (SBI)
- HDFC Bank
- Standard Chartered Bank
- Union Bank of India
📊 Scale and Reach
| Metric | Value (as of mid-2025) |
|---|---|
| Demat Accounts | Over 3.9 crore (39 million) |
| Value of Assets | ₹398 lakh crore (₹3.98 quadrillion) |
| Depository Participants | 250+ |
| Market Share | 89%+ (in terms of asset value among Indian depositories) |
| Geographic Reach | Present in 99% of Indian pin codes, plus international |
📈 NSDL IPO (Initial Public Offering) – 2025
| Feature | Detail |
|---|---|
| IPO Type | Offer for Sale (OFS) |
| Issue Size | ₹4,011 crore |
| Shares Offered | 5.72 crore shares |
| Price Band | ₹760–800 per share |
| IPO Dates | Public: 30 July – 1 August 2025 Anchor: 29 July 2025 |
| Listing | Expected by 14 August 2025 |
| GMP (Grey Market) | Premium initially high (~₹1,025), now down by ~20% due to market conditions |
Major Sellers in IPO: NSE, IDBI, HDFC Bank, SBI are selling part of their holdings.
🏦 Subsidiaries and Associated Services
- Protean eGov Technologies Ltd(formerly NSDL e-Governance):
- PAN, TIN, Aadhaar enrolment, NPS operations
- NSDL Payments Bank:
- Digital banking services
- NSDL Database Management Ltd:
- Maintains employee PF data, KYC registry, etc.
📜 Benefits of Using NSDL
- Safe and secure storage of assets
- Fast transaction settlement (T+1 cycle)
- Cost-effective trading (no stamp duty)
- Eliminates risk of fake, torn, or lost share certificates
- Simplifies tax reporting and capital gains tracking
⚠️ Important Notes for Investors
- You must open a Demat account via a DP, not directly with NSDL.
- NSDL does not charge investors directly; fees are collected via DPs.
- KYC and PAN linking is mandatory to hold demat securities.
- IPO investments, mutual fund holdings, and ETFs can be tracked via NSDL’s e-CAS service.
