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National security depository limited NSDL
NSDL was established in 1996 in Mumbai to create a national infrastructure for the electronic settlement of securities using international standards. It maintains investor holdings electronically, facilitates the electronic allotment of IPOs, and allows securities to be used as collateral for loans. Major participants include banks like HDFC, global custodians, and brokers. NSDL reduces paperwork and costs while preventing lost, stolen, or forged certificates to provide benefits for both investors and companies.
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National security depository limited NSDL
- 1. NSDL Introduction • Founded ason 8th November 1996 in Mumbai . • Established a national infrastructure Using Int’l Standards. • Deals only with settlement of securities. • Work as mediator and staunch supporter between brokers and investors . • was promoted by IDBI,UTI,NSE & SBI.
- 2. Functions • Maintains investorholding in electronic form. • Makes allotment in electronic form, of initial public offerings (IPO). • NSDL facilitates offer of securities as a mortgage for loans. • It offers facility for freezing or locking of investors’ accounts.
- 3. Benefits • Reduce paperwork& thereby reduce direct costs. • Instances of loss/theft/mutilation/forgery, etc. of certificates will be completely eliminated. • Company acquires a progressive, investor friendly image. • Company can save substantial time of the secretarial department works .
- 4. PARTICIPANTS OF NSDL •Global Trust Bank • HDFC Bank • City Bank Custodial services • Morgan Stanley Custodial Services • Reliance Share and Stock broking • State Bank of India • Deutsche Bank