Categories: IPO

National Securities Depository Limited (NSDL)

NSDL is a central depository participant in India and is one of the largest depositories in the world. It was established in 1966 and is used to hold shares or any other securities like bonds in dematerialized form.

NSDL caters to a variety of market participants like brokers, investors, issuing companies, custodians, etc. The services offered by NSDL include opening of a Demat account, setting up nomination facilities, transfer of Demat accounts from one broker to another, settlement of orders, purchase, and redemption of mutual fund units, etc.

Why is NSDL important?

NSDL plays a crucial role in:
a. Reducing risk of physical certificates
b. Elimination of stamp duty
c. Quicker settlement and liquidity of securities
d. Prompt transfer of securities and their registration
e. Ensuring no bad deliveries
f. Reduction in paperwork and formalities
g. Close monitoring of brokerage charges

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