Nsdl National Securities Depository Limited

NSDL (National Securities Depository Limited), established in 1996 and headquartered in Mumbai, is one of India’s largest securities depositories. It revolutionized the Indian capital market by introducing dematerialisation (demat), allowing shares and other financial instruments to be held and transferred electronically instead of using physical certificates. This shift made the markets safer, faster, more transparent, and efficient, reducing problems like theft, loss, forgery, and transfer delays.

Key Functions:

1. Dematerialisation and Rematerialisation: Converts physical shares to electronic form and vice versa.
2. Electronic Settlement of Trades: Ensures quick and secure transfer of securities.
3. Maintenance of Demat Accounts: Investors hold securities electronically through NSDL-authorized Depository Participants (DPs).
4. Corporate Actions: Manages dividends, interest, bonus shares, rights issues, stock splits, etc.
5. Pledging Securities: Investors can pledge demat holdings to get loans without transferring ownership.

Digital and Value-Added Services:

NSDL also provides services like e-Voting for shareholders, e-Insurance Accounts (eIA), e-Sign and online KYC, e-Proxy voting, Consolidated Account Statements (CAS), and PAN services for issuance and verification.

Example: An investor holding shares in demat form through NSDL can receive dividends directly in their bank account, vote electronically in company meetings, and use the same holdings as collateral for a loan—all without handling physical share certificates.