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 that handles most of the securities held
and settled in dematerialized form in the Indian capital market.
Using 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
In 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.
For more details visit: www.nsdl.co.in