National Securities Depository Limited (NSDL) is a central securities depository of India with its office in Mumbai. It was established in August 1996 as the first electronic securities depository company in the country. NSDL is governed by the Depositories Act, 1996 and it works under the jurisdiction of the Securities and Exchange Board of India (SEBI). It has been promoted by the UTI, NSE, State Bank of India, HDFC Bank and City Bank.
Following functions are performed by NSDL
- Enables the surrender and withdrawal of securities to and from the depository (dematerialization and rematerialisation).
- It maintains investor holdings in the electronic form.
- It facilitates transfer of securities.
- It is engaged in Stock lending and borrowing.
- Performs settlement of securities that have not been done in the stock exchange.
- it facilitates in mortgaging the securities for loan.
- it locks the investors account whenever required.
- it facilitates electronic credit of shares in public offerings.
Is NSDL a government company ?
No, It is not a Government-owned company. It is a privately held and professionally managed company. But it is authorised by the Central Government to offer depository services in India. Also, The Income Tax Department of India entrusted NSDL with the acceptance and processing of PAN applications.
Watch the video to know more about NSDL, CDSL and their functions