Overview about National Securities Depository Limited (NSDL)
Founded as of 8th November 1996, the National Securities Depository Limited (NSDL) is India’s largest central securities depository. It is based in Mumbai and was the brainchild of a national economic group that was focused on building a robust system to handle securities that are used in its dematerialized format in the Indian market. This was essential to tackle the century old practice of paper based trade settlements that had since turned cumbersome and a liability, thanks to issues such as bad delivery. NSDL was the natural, successful and timely answer.
What are ‘Securities’?
In simple layman terms, a ‘security’ is deemed as an financial asset that can be subject to trading. Securities are financial instruments that can include equities, fixed income instruments, equity warrants, common stocks, etc. Security, as a financial instrument could mean one of the following- a) As stocks, ownership in a publicly traded entity, b) As bonds, relationship with a Government body as a creditor, or c) Ownership rights as represented by an option. Securities hold specified financial value, are interchangeable, negotiable and usually segregated into debts and equities. Debt securities include Private/Public sector bonds, deposit certificates and stocks that usually represent borrowed money that must be repaid. Equities on the other hand represent a shareholder’s ownership in a corporate entity and are usually in the form of stocks. The major difference between owners of debt securities as compared to owners of equity securities is that the latter can generate profits from capital gains. Finally, any entity that generates such securities is known as the issuer.
NSDL- An Overview
When speaking of the Indian financial market, it is a given to reference the National Securities Depository Limited (NSDL). This organization plays an important role, that of a mediator and staunch supporter of brokers and investors who ply their trade in the Indian financial market. NSDL was founded as a counter to the paper-based systems of old, that were imperfect and prone to errors. In August 1996, the Indian lawmakers enacted the Depositories Act that led to the creation of this premier organization. Since then, NSDL has played a pivotal role in the creation of products and services that benefit the stakeholders and procedures impacting the Indian financial services juggernaut.
The Indian financial market has been around for a long time, has prospered and set shining examples. However, a while back, this platform faced many hindrances thanks to the paper-based route of settlement of trades that caused such anomalies as bad delivery and delayed transfer of ownership. Clearly, a better, reliable and refined system was the need of the hour. NSDL propagated the innovation and technology that makes it easier for investors/brokers to seriously indulge with securities in the Indian financial ecosystem. NSDL is a very popular entity in India, with registered Demat Accounts encompassing an impressive 89% of pin-codes spread across the country and an average of 3586 accounts opened with NSDL per day since November 1996. The principal reason for this boom is the associated simplicity and the fact that transacting under the depository system is infinitely cheaper as compared to transacting with certificates.
NSDL is the coming together of some of the most influential financial organizations in India as promoters and stakeholders. Leading the pack are the Industrial Development Bank of India (IDBI), Unit Trust of India (UTI) and the National Stock Exchange of India Limited (NSE). Each of these entities is an influencer in the spheres of developmental banking, mutual funds and stock exchange respectively. Alongside these, the following banks are principal shareholders in NSDL-
- Axis Bank
- Deutsche Bank
- State Bank of India (SBI)
- HDFC Bank
- Union Bank of India
- Standard Chartered Bank
- Dena Bank
- Canara Bank
- Oriental Bank of Commerce
A simple question, yet the associated implications are enormous. Listed below are the various benefits of subscribing to the National Securities Depository Limited (NSDL)-
Bad Deliveries, No More- Traditionally, a buyer in the Indian financial market was expected to take the massive risk of undertaking a transaction without an actual confirmation of the quality of the assets to be purchased. This is not a problem in the case of a depository platform (as displayed by NSDL) wherein after the investor’s holdings are dematerialised, there is no question of them being ‘under objection’ and thus, the probability of bad delivery is taken right off the table.
Stamp Duty Isn’t a Consideration- The common factor in almost all traditional means of transfer of securities, stamp duty isn’t required when securities are transferred in the depository system. Stamp duty isn’t necessary in the case of debt instruments, mutual funds and equity shares.
Quick Turnarounds and Faster Settlements- Faster turnover of stocks is assured thanks to the adoption of a settlement cycle wherein trades are settled on the second working day from the actual trade day. This move also ensures greater liquidity with the investor.
Problems From Paper, Eliminated- In earlier days, dealing in securities with paper certificates led to a lot of obvious problems. These certificates could be stolen, lost, subject to atmospheric and weather conditions and accidentally or intentionally mutilated/destroyed. With depository systems and their predominant reliance on online solutions, such paper based problems are a thing of the past.
Lightning Fast Transfer and Registration of Securities- Traditionally, after purchasing the securities, the investor had to forward the same to the company’s registrar to ensure that the change of ownership was duly registered and recognized. This was a time consuming and patience sapping procedure that usually took 3-4 months to complete as compared to the 2 months stipulation listed in the rule books. This meant that investors were cutting it close as far as registering their purchased securities on time is concerned. Thankfully, this isn’t a concern in the depository environment wherein as soon as the payment is confirmed, the concerned securities are moved to the investor’s account and he/she is considered the legal owner of the transferred securities. Naturally, investors prefer this fast, complication free and scalable system as compared to the rickety option from the days of old.
Limited Paperwork, Files and Folders- Apparently, doing things online is good for the rainforests of the world. Online transaction of securities lead to smaller paper trails, non-existent files and folders. And of course, everything is available at the click of a few buttons and there is no need to maintain an extensive offline repository of associated literature.
Stay in the Loop with Periodic Status Reports- The depository ecosystem affords the investors regular updates with regards to their securities and transactions undertaken. This is desirable from the investor’s end as it allows him/her a greater understanding of the procedures in play and the adjustments that he/she must undertake for a profitable future.
Quicker Disbursement of Non-Cash Corporate Benefits- A major advantage that the NSDL system offers the investor is the quick transfer of non-monetary corporate benefits (Eg- bonus, rights, etc) to his/her account. Since this happens through the online media, the risk of loss of paper based certificates is nullified and the actual transfer happens in a quick, safe and accountable way.
Broker Friendly- If you are an investor dealing in dematerialised securities, the broker interacting with you is likely to reduce the applicable brokerage charges. This happens because operating in the depository environment eliminates the costs incurred in handling lengthy paper trails and also, personally eliminates the risk faced by the broker as the introducer. Win win situation for the both of you.
Changing Addresses is Easy- In the earlier system, if the investor were to change his/her communication/business address, the same had to be updated with the company/registrar through a lengthy and paper dominated process. Today, thanks to the depository system, all that the investor has to do is to inform his/her concerned DP about the address change, supply the requisite documents and relax. The change is reflected in the individual database of all the companies wherein the investor is listed as a registered owner of securities.
Transmission of Demat Shares, Simplified- In case of NSDL, the transfer of securities held in the demat account involves the simple provision of the requisite documents to the concerned DP and said transmission is completed smoothly and on time. However, in case of the traditional physical securities, the nominee/ surviving joint holder(s) must communicate with individual companies where the shares are held to affect their transfer.
Sale of Securities on Behalf of a Minor, Simplified- The designated guardian responsible for the minor isn’t required to seek the approval of the court of law when selling demat securities on behalf of said minor.
Services Offered by NSDL
Broadly, the operations undertaken by NSDL are grouped under three sections, as listed below:
Basic Services- Aptly, these include some of the basic facilities, such as account maintenance, market transfers that facilitate trade settlements, dematerialisation, rematerialisation, nomination or transmission, off market transfers, etc. The exact nature of such basic services are defined by the Depositories Act and the same are targeted at investors, brokers, banks and other securities issuers who participate in the Indian financial market.
Value Added Services- Aside from its core competencies of electronic custody and trade settlement services, NSDL also offers special value added offerings including delivery of securities (automatically, to the concerned clearing corporations), hypothecation and pledge, lending of stocks, online services such as SPEED-e and IDeAS, distribution of cash/non-cash corporate benefits, etc. NSDL is known for its electronic innovations in this complicated field, including the provision of a system that allows brokers to transfer contract notes to fund managers/custodians through the online media. This value added service is called STEADY and has been a NSDL staple since 30th November, 2002.
NSDL Consolidated Account Statement (CAS)- In a bid to help subscribers access all their financial assets, electronically, as part of a single demat account, NSDL offers its much appreciated NSDL Consolidated Account Statement (CAS) option. The NSDL CAS statement includes references to a number of popular instruments in the securities market, namely mutual funds, investments into equity shares, bonds, government securities that are held in demat, debentures, instruments concerning the money market, etc. The NSDL CAS statement applies, provided you are the primary/sole holder of the concerned single/jointly owned investment account. NSDL CAS is a popular tool as it allows the investor an easy, reliable and fast option to keep track of his/her investment portfolio and make informed financial decisions in the future.
Applicable Fees for Various NSDL Services
The following is a comprehensive listing of all the major/minor charges applicable for the various services offered by NSDL to its subscriber base, namely Depository Participants and Issuers:
Applicable Fees on Depository Participants
Rs 25,000 (Non-refundable)
Rs 4.50 per debit instruction
Rs.25 per instruction for creation of pledge / hypothecation
Fee for dematerialisation of securities
Fee for rematerialisation of securities
Rs.10/hundred securities or part thereof, or flat fee of Rs.10 per certificate (whichever is higher). Note- No rematerialisation fee shall be charged for Government Securities.
Rs.1,00,000 (if fee charged to the Participants is less than this, than the difference will be charged thereof).
Each Participant must pay an interest free refundable security deposit of Rs.10 lakh. However, Clearing Corporation/House of a Stock Exchange will be exempt from this.
Applicable Fees for Issuers
In the case of an Issuer, the annual custody fees applies at the rate of Rs.8 per portfolio (ISIN Position) in NSDL, provided the minimum amount (plus service tax) is as listed below-
Nominal Value of Securities Admitted.
Lesser than or equal to Rs.5 Crores
Above Rs.5 Crores but less than Rs.10 Crores
Above Rs.10 Crores but less than Rs.20 Crores
Above Rs.20 Crores
Also, in order to make its shares available for dematerialisation, an Issuer of unlisted securities is required to pay a joining fees of Rs.30,000 (plus tax). However, if said Issuer is able to get its securities listed on any certified stock exchange within one year of joining NSDL and crediting the joining fees, then said fees will be adjusted against the one time custody fees or Annual custody fees, whichever may apply.
Online Services Offered by NSDL
The following online services (also called e-services) are offered by NSDL to help players of various stature conduct their business better in the Indian financial market. These offerings mark NSDL’s foray into practical innovation and commitment to improving productivity and encourage larger participation at the online level. When compared to the traditional methods, e-services are faster, more reliable and infinitely safer.
A delightful play on the word ‘Speedy’, NSDL launched this service as of September 2001. SPEED-e is intended as the medium to help the quick turnaround of delivery instructions as member demat account holders can directly upload such instructions on the SPEED-e website. However, potential participants (inclusive of clearing members) must first subscribe to this service after which they are granted access with a password (exclusive to demat account holders) or with a Smart Card/ e-Token (applicable to both demat account holders as well as clearing members).
Short for ‘Internet Based Demat Account Statement’, IDeAS helps a demat account holder view the balances and transactions that were affected with regards to his/her demat account through the online media. These updates happen instantly, with a maximum delay of 30 minutes. Inherently, IDeAS is available to the users of SPEED-e, clearing members who have specifically subscribed to this service and clients whose participants are registered users of IDeAS. Again, this application can be accessed either with a user-generated password or with a Smart Card/e-Token. IDeAS was launched on Jan 1, 2004.
When speaking of such things as the management and transfer of securities, a responsible and risky task in itself, the concept of security needs to be given its due prominence. Thus, NSDL has introduced the STEADY facility that is primarily responsible for the communication of contract notes from certified brokers to the intended fund managers, electronically, and including the requisite digital signatures and the highest measure of encryption. Further, STEADY allows the recipient fund managers to enhance/modify the contract notes and convert it into palpable instructions that will be easily perceived by the custodians who come next in the chain of communication. STEADY is best suited for FII and domestic institutional trades.
Depository Account Validation (DAN)
As the name suggests, Depository Account Validation (DAN) offers a secured online platform wherein subscribers can authenticate such identities as Client ID, DP ID and PAN details of investors. This option allows subscribers of NSDL to confirm upon the basic details of the investor community and ensures greater reliability and trust. DAN applies to public offers, public issues etc, and is on offer to syndicate members, lead managers, etc.
As is obvious, NSDL has quite a knack when it comes to acronyms and short forms. SPICE stands for ‘Submission of Power of attorney based Instructions for Clients Electronically’ and refers to the time saving action wherein Clearing Members (these are clients who have bestowed Power of Attorney (POA) in favour of the respective clearing member) can utilise SPEED-e to issue auto pay instructions to Participants and debit from the Client’s demat accounts hosted here and consequently credit the pool accounts belonging to the Clearing Members. SPICE is useful as it eliminates the cumbersome routine of issuing paper based delivery instructions to the participants (where the Client’s demat accounts that must be debited are hosted).
Aptly named, Submission of Instruction through Mobile Phone Login Easily (SIMPLE) is another convenient facility that allows users of SPEED-e who utilize a password to login, to ‘simply’ issue Client to Clearing Member Pool Account transfer instructions using their registered mobile phones. Herein, the subscriber must login to the SPEED-e website via their GPRS enabled phone and affect the transaction. Simple and fast!!
How to Become a NSDL Business Partner?
When it comes to describing NSDL’s ecosystem, this premier organization actions its activities through a range of service providers including Depository Participants (DPs), Issuers, Agents, Stock Exchanges as represented by their Clearing Houses, etc. NSDL refers to their participants as Business Partners and requires these partners to be fully integrated into its own depository system such that they can then service investors and clearing members, efficiently and on time. How to attain this status as a privileged business partner of NSDL? Different entities must follow different routes as listed below-
As a Depository Participant (DP):
In principle, NSDL reaches out to its target investors through mediums called Depository Participants, also abbreviated as DP. These participants are basically organizations/entities that provide financial services and have set infrastructures that can be expertly utilized by the NSDL to reach its target audience. Listed here are banks, private financial institutions, brokers, custodians, etc.
Admitting DPs into the NSDL fold is a two pronged process- a) evaluation and confirmation by SEBI (Securities & Exchange Board of India) and, b) evaluation and approval by NSDL. Currently, a vast majority of the aforementioned players in the Indian financial scene are prominent players under the NSDL umbrella.
As an Issuer:
The onus for an issuer to become part of the NSDL machinery is that it can then offer demat facilities to its privileged shareholders by taking advantage of securities that are listed under NSDL. In order to become NSDL’s business partner, an issuer must submit the required set of documents, followed by the extension of 3 blank copies of the three part agreement by the NSDL to the R&T Agent. Next, the R&T Agent and the Issuer must sign the agreement and send it back to NSDL at the specified contact address. In order to facilitate these activities, NSDL issues an ISIN (International Securities Identification Number) that is duly forwarded to the Issuer to help out with future transactions.
As a R&T Agent:
Basically, the need for the Registrar & Transfer (R&T) Agents in the NSDL format lies in the fact that Issuers may utilize the computer facility named DPM-SHR that is usually built in-house by the issuer or borrowed from said R&T Agent in order to create or extinguish securities in demat form. Herein, note that securities in demat can be created in two distinct ways, and the same can be extinguished in two distinct ways as well. The control for effecting these crucial actions is retained by the Issuer, and the R&T Agent helps in the process by lending out the computer facility required to confirm upon and action these activities.
An R&T Agent can align with the NSDL as a business partner by following these systematic steps-
- Introduction through a formal letter issued to the NSDL.
- Procurement of the necessary hardware and software components/configurations.
- Procurement of the Multi Protocol Label Switching (MPLS) line.
- Submission of Form B to NSDL, preceded by the installation of the requisite hardware/software/network systems and peripherals.
- Submission of the stipulated fees for the procurement of the DPM-SHR software.
- Comprehensive training of personnel who will be manning said operations and equipment.
- Pilot testing to ensure the proper workings and response of the configured software system.
- Confirmation of R&T Agent status when NSDL activates the business partner as a share registrar.
Post the above actions, the subscriber is an active R&T Agent on the NSDL ecosystem.
As a Clearing Corporation/House:
In the business of settlement of demat shares, the average stock exchange needs the robust settlement guarantee mechanism as offered by the typical Clearing Corporation (also known as Clearing House). Herein, the watchdog, SEBI (Securities & Exchange Board of India) must have plastered its seal of approval before said settlement guarantee mechanism can be floated in the larger market.
Admission Criteria for a Clearing Corporation/House to become an NSDL Business Partner-
- NSDL must be convinced without a shadow of a doubt that the concerned Clearing Corporation/House sports a operational structure that ensures flawless and timely payment against delivery or guarantees settlement.
- NSDL is satisfied with the Clearing Corporation/House’s operational acumen to provide services that directly relate to the clearing/settlement of transactions in terms of securities that are admitted to the depository in its dematerialised form.
- The Clearing Corporation/House is sympathetic to the queries and concerns of the Clients and Participants, and is always forthcoming to address such queries and concerns.
- As specified at signup, and adequately covered per the NSDL’s business rules, the Clearing Corporation/House must possess the necessary software and hardware systems that are deemed crucial to interact with the Depository without lags or timeouts.
Finally, the overall procedures and modus for a Clearing Corporation/House to join the NSDL as a business partner is similar to the procedures applicable in the case of a Depository Participant (DP).
As an Investor:
In any financial system, the role of an investor is infinitely crucial to allow the system to work flawlessly. The Indian capital market too has risen leaps and bounds thanks to the faith shown by the average investor who is superiorly aided by the NSDL to ensure that crucial procedures such as settlement of trades is completed without a glitch. Hence, with the importance attached to the typical investor, the procedures involved to get him/her onboard the NSDL ship is as simple as simple can be-
- The investor must open a beneficiary account with a DP of his/her liking. Note that this procedure is very similar to you or I opening a common savings bank account in a bank of our choice.
- Continuing with the above analogy, the investor can deposit, hold and transfer securities from his/her beneficiary account without actually moving any share certificates. This is similar to a normal savings account holder managing his/her monies without physically coming into contact with said cash.
- Herein, note that the account opened in the depository system is known as the ‘Beneficiary Account’ and the concerned account holder is known as the ‘Beneficial Owner’.
As a Broker:
Think of any stock exchange and the first thing to flash before your eyes are the Stock Brokers, loud, determined warriors in the game of the Bulls & Bears. Herein, the Brokers serve as an important, irreplaceable link between the investors and the associated Clearing Corporation/House operating in the depository system. All the securities that are purchased or sold are sourced through the concerned Clearing Corporation/House based depository account for settlements. Thus, in order to participate in this system and settle trades in dematerialised securities, the broker must operate a clearing account with any Depository Participant (DP) of his/her choice. Note that such an account is utilized only for the reception and transfer of shares from and to the concerned Clearing Corporation/House and thus, the broker himself/herself does not retain any ownership over the shares that move to-and-fro this account. In essence, the broker does have a Clearing member account but does not directly benefit from the financial commodities held in such an account.
Safety of Securities with NSDL
When speaking of any financially relevant system, the concept of safety in terms of security offered to the participating members, the monies involved and the transmission procedures, takes center stage. In the NSDL ecosystem as well, a number of precautions are maintained in order to ensure the safety of the investor holdings. The following list illustrates the majority of these safety protocols-
- SEBI (Securities & Exchange Board of India) is the watchdog that ensures that when selecting Depository Participants (DP), only credible entities are selected. Aside from SEBI’s evaluation, the proposed DP must also pass the strict evaluation conducted by NSDL itself.
- Every enacted transaction is duly recorded on the NSDL’s central server and the individual databases maintained by the various business partners.
- All investors receive periodic account statements from their respective DPs, thereby allowing them complete control over their individual securities portfolio.
- NSDL conducts regular checks into the activities of DPs as well as the R&T Agents.
- An interesting precaution is NSDL’s initiative to forward account statements to a random list of investors as a secondary reference. The investor is now able to compare between the statements issued by his/her DP against the one issued by NSDL and point out discrepancies, if any.
- Without verified instructions from the Client, DPs are not allowed to action any debit or credit requests to the concerned account.
- Exchange of data between the NSDL and its business partners is strictly protected by encryption in accordance with the latest technologies available in the market. In the case of NSDL, the implemented encryption systems are more robust than the ones prescribed by SEBI.
Freeze Facility allows a account holder to freeze the securities existing in his/her depository account for as long as he/she wants. Freezing an account puts an effective stop to any desirable/accidental/malicious activity that is likely to occur with the otherwise active account. By requesting the DP (via the proper format), an account holder can activate any of the following freeze options-
- Debits ONLY
- Debits & Credits
- Freezing just a individual ISIN in the account
- Freezing a specified number of securities that exist as part of an ISIN in an account
- Grievance Redressal is an important action point for the NSDL. All concerns and grievances raised by the investor must be suitably addressed by the concerned business partner. However, if the business partner isn’t responsive or takes a lot of time to acknowledge the problem, then the investor can directly approach the NSDL. The complete contact information for NSDL is available on its official website.
- In order to compensate investors for the possible loss that could be incurred by them due to such unforeseen or accidental mistakes as omissions, errors or loss due to the concerned DP’s negligence, NSDL has a potent insurance policy in place.
- NSDL is very particular to ensure that it and its business partners utilize computer hardware and software that is cutting edge and conforms to the set industry standards. These systems are only put into place after they have been subjected to strict crash tests and proofed against all possible and unforeseen contingencies.
- NSDL has taken steps to ensure that knowledge of how the depository system works isn’t a secret science. In this regard, NSDL offers the Certification Programme in Depository Operations (popularly known as NCFM certification) and requires that atleast one individual from each partner DP must take up and qualify in this certification course. This is done so as to ensure that every branch of a DP has atleast one individual who is an expert when it comes to depository systems and can explain the same to the local investors as and when required.
- In order to ensure that the NSDL’s online presence is available 24x7, and not impacted by any man-made or natural calamities, a disaster backup site is maintained on the ready at all times. This site features a computer that is identical to the mainframe computer and is always available to take the lead as and when the mainframe computer is rendered inoperational. Backup power in case of the failure of the main supply is also maintained.
- All the systems, hardware, software and communication networks servicing the NSDL ecosystem are periodically reviewed to ensure their effectiveness, operational strength and security.
I’am an Investor. Why must I align with NSDL to trade in securities?
Investors plying their trade in the Indian financial market, under the auspice of the National Securities Depository Limited (NSDL) have a lot of wonderful and thoughtful features to look forward to. The introduction of scripless holding and transaction of securities, that is a system wherein the security holding and settlements are represented by only book entries and no physical paper certificates are issued or exchanged, has ushered in a lot of benefits for investors. The following is a comprehensive listing of the same-
- Bad deliveries are a thing of the past, ensuring greater efficiency for the investor.
- Physical paper certificates were prone to loss, theft or accidental/intentional damage and/or mutilation. This isn’t possible in the case of NSDL as the system of paper certificates has been completely eliminated. This has also resulted in reduced volumes of paper and the elimination of all the problems that are commonly associated with transactions based on the classic system of paper trails.
- Faster settlements with quicker turnaround times.
- Stamp duty waived when equity, debt instruments and mutual fund units are transferred about in the depository.
- Corporate benefits such as bonus, rights etc. are disbursed faster and with more surety.
- Now, thanks to the electronic mode of working, securities are transferred and registered in record time.
- Scripless trades also lead to same day pay-in and pay-out of securities and funds.
- When dealing with dematerialised securities, the incurred brokerage charges are considerably less as the brokers benefit from lesser back-office spendings on managing paper certificates.
- Investors receive periodic account status reports that keep them abreast of their securities portfolio and help them plan better for future trades.
- Simplification of such erstwhile complicated procedures as changing the investor’s business address, appointing a nominee and such.
Thanks to all the pointers listed above, there is a sizable decrease in transaction costs where dematerialised securities are concerned as compared to the traditional physical securities.
What is the nomination procedure? Who can nominate and who can be a nominee?
Answering this multi-part query in the order presented-
The applicant must submit a duly filled nomination form to his/her chosen DP. This can be done at the time of account opening or at a later date. On the nomination form, the signatures of the nominee, signatures of two witnesses, the complete name-address-photograph of the nominee must also be furnished. As simple as this, the nomination will come into effect.
Individuals who are owners of a beneficiary account either as an individual or jointly can nominate. Non-individuals including trusts, partnership firms, power of attorney holders, etc. cannot nominate under this setup. Nominating is limited to only individuals.
Similar to the nomination setup above, only individuals can be nominees. Any non-individuals, including the examples listed above, aren’t eligible to be listed as a nominee.
What are the various services offered by NSDL that can benefit me?
Conversion of physical paper certificates into electronic demat format. This is also called Dematerialisation.
Converse of the above, conversion of securities that are in demat form into their physical paper based alternatives. This is also called as Rematerialisation.
Involved in the return purchase/redemption of mutual fund units.
Facilitates the pledging of dematerialised securities against loan.
Allows freezing of demat accounts thereby suspending all to-and-fro activities associated with it.
Settling of stock exchange trades that are connected to NSDL, the electronic way.
Various online facilities including SPEED-e, IDeAS, STeADY, DAN, SPICE and SIMPLE that help speed up the trade and transmission of securities.
Helping out the Investor with such erstwhile time consuming procedures as change of address, account monitoring via periodic reports, and similar facilities.
Simplified nomination facility for demat accounts.
Speed transmission of such non-cash corporate benefits as bonus, through the electronic media.’
Can I receive securities onto my NSDL account from an account that is hosted with some other depository in India?
Yes. Transfers between accounts as stipulated here is possible, provided all the necessary documentation and other confirmatory requirements are complied with. One of NSDL’s key strengths is that it does allow such inter-depository transfers, a factor that was too time consuming and complicated with the traditional paper based transfer of securities.
How can I keep myself updated about the various activities concerning my DP Account?
Picture this just as you would with a common savings bank account- every transaction affected is immediately notified to you via SMS and email. The same system is in force with your DP Account wherein every transaction (debit or credit) will be notified through periodic account statements. These statements may not be as frequent or in real-time as the SMS or email option, but their frequency can be adjusted by talking it out with your DP, and probably paying a small fee for the same
News About NSDL
India’s IDS Teaches a few Lessons
The government’s successful Income Declaration Scheme (IDS) has received a lot of positive feedback, and rightfully so. Finance Minister Arun Jaitley announced that nearly $10 billion has been declared under this scheme. As a result of this scheme a sizable portion of the economy is now moving towards generating legitimate income which will be taxed year on year. The IDS goes to show that there is no requirement for a large number of schemes, but rather, the execution of vital schemes in a structured manner. There is an international drive to eliminate unaccounted for income and India’s IDS scheme is a good step in that direction. The use of data collected from tax returns, withholding tax filings etc. shows the importance of data mining and the number of taxpayers that have been brought under the tax net has significantly increased. It is estimated that around 64,000 of the declarants were taxpayers and not first-time taxpayers.
14th November 2016
Investor Accounts with NSDL and CDSL Cross 2.6 Crore
Based on a report, the investor accounts with the two depositories NSDL and CDSL were above 2.6 crore as on 30 Sep 2016. It has been observed that there is an increase in the number of accounts in every 7 months. Recent figures show an addition of 15 lakh accounts between 2015 and 2016. The number of investor accounts in NSDL and CDSL were 1.50 crore and 1.15 crore respectively. NDSL is promoted by National Stock Exchange, IDBI Bank and SUUTI whereas CDSL is endorsed by Bombay Stock Exchange, HDFC bank, State Bank of India, Bank of Baroda, Bank of India and Canara Bank.
9th November 2016
NSDL announces the launch of retail facility for trade in government securities
National Securities Depository Ltd (NSDL) with an aim to boost retail investments in government sector has launched a facility for individual account holders to trade in government securities (G-Sec) market. It allows all demat account holders of NSDL and CDSL to make transactions in government bond and securities. Earlier, retail investors had access to government securities through debt schemes of mutual funds, but the new system will enable them to transact through the G-Sec platform of RBI. The new retail trade facility commenced its operations on Tuesday and the first trade was initiated by HDFC bank.
9th November 2016
Financial Institutions turn to Internet Banking for obtaining Self Certification, CBDT Says
Financial Institutions can now get self certification, under CRS and the FATCA, through internet banking platform from an user account where transaction rights are offered to the customers. FI representatives have large number of financial records and it is next to impossible to get self certification directly from account holders. In a view of providing alternate channels to get self certification, it has being offered through Internet Banking platform where a customer has transaction rights. The Central Board of Direct Taxes (CBDT) also said that securities valuation may be done as per values communicated by CDSL/NSDL repositories to brokers and participants.
2nd June 2016
FIIs in equities as per data on 3rd May
As per Tuesday’s data, data released by the NSDL says that the FIIs were net buyers in debt segment and in equity.
The gross buying, in equity segment was of Rs 2986.67 crore against gross sell of Rs 2637.70 crore. Further, FIIs stood as net buyers of Rs 348.97 crore in equities.
The gross purchase was of Rs 500.55 crore in the debt segment. This is with gross sales of Rs 333.77 crore. Thus, FIIs stood as net buyers of Rs 166.78 crore in debt.
10th May 2016
FIIs Net Buyers in Both Debt and Equity Segments
According to data released on Wednesday, Foreign Institutional Investors (FIIs) were net buyers in both debt and equity segments.
National Securities Depository Limited (NSDL) said that in the debt segment, with a gross purchase of Rs. 2,434.39 crore and gross sales of Rs. 919.21 crore, FIIs were net buyers with Rs. 1,515.18 crore.
In the equity segment, FIIs were net buyers of Rs. 1,040.60 crore. Gross purchase was worth Rs. 6,132.80 crore and gross sales were worth Rs. 5,092.20 crore.
26th April 2016.
NSDL reports FIIs as net sellers
On Monday April 11, 2016 Foreign Institutional Investors (FIIs) sold shares in equity and debt segments. The gross buying, in the equity segment, amounted to Rs 6111.01 crore as against gross selling of Rs 6143.79 crore. FIIs stood as net sellers by buying Rs 32.78 crore worth of equities.
The gross purchase, in the debt segment, was around Rs 2983.02 crore and gross sales was Rs 3041.78 crore. In this segment FIIs sold shares worth Rs 58.76 crore.
14th April 2016
Fiis Top Sellers in Both Equity and Debt
Foreign Institutional Investors (FIIs) formed the net sellers in both equity and debt segments, as per statistics from the National Securities Depository Limited (NSDL).
With a gross purchase of Rs. 2,649.87 crore and a gross sale of Rs. 3,164.82 crore in the equity segment, the FIIs netted sales of Rs. 514.95 crore.
In the debt segment, the FIIs recorded net sales of Rs. 269.11 crore with gross buying of Rs. 1,140.22 crore against gross sales of Rs. 1,409.33 crore.
12th April 2016
Complaint filed by Registrar’s Association against NSDL dismissed
NDLM or NSDL Database Management Ltd. has approached SEBI to let it register as a registrar for issue and transfer agent. NDLM is a totally owned subsidiary of NSDL and hence a complaint has been filed to SEBI by the Registrar’s Association of India. The complainant has mentioned that if NDLM is allowed to participate in the market it would create and unfair ground for other players to enter and a monopoly situation can be created.
To this the Competition Commission of India, CCI has responded that the participation of NDLM is still in the proposal phase and such the allegations currently are quite premature.
5th April 2016.
Foreign Institutional Investors Stood as Net Buyers in Equities
The Foreign Institutional Investors as per data from the 30th of March 2016 were net buyers in the equities segment. The FIIs were also net sellers in the debt segments based on the data published by the NSDL. As far as the equity segment goes, the gross purchases were recorded at Rs.4667.67 crore while gross sell was recorded at Rs.4026.72 crore. Therefore, FIIs stood as net buyers of Rs.640.95 crore in equities. With regards to the debt segment, FIIs stood as net sellers of Rs.4352.15 crore in debt.
1st March 2016