The enactment of Depositories Act
in August 1996 paved the way for establishment of NSDL, the first
securities depository in India. NSDL promoted by institutions of
national stature responsible for economic development of
the country has since established a national infrastructure of
international standards with custody value in excess of
Rs.60 lacs crores and facilitates settlement of more than 80% of
securities traded in the Indian capital market.
innovative and flexible technology systems, NSDL works to support the
investors and brokers in the capital market of the country. 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 quiet but central role in
developing products and services that will continue to nurture the
growing needs of the financial services industry
the depository system, securities are held in depository accounts,
which is more or less 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.