National Securities Depository Limited (NSDL)

Subject – Economy

Context – FPIs adopt contrarian game plan: Invest in IPOs, sell in stock market

Concept –

National Securities Depository Limited (NSDL) is an Indian central securities depository under the jurisdiction of Ministry of Finance, Government of India based in Mumbai.
It was established in1996 as the first electronic securities depository in India with national coverage.
- The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL.
NSDL provides bucket of services to investors, stock brokers, custodians, issuer companies, Saving account current account Business corresponding etc. through its nationwide network of Depository Participants or DPs and digital platforms.
- It handles most of the securities held and settled in dematerialized form in the Indian capital market.
It is a depository of Indian securities that stores digitally securities such as investor bonds, shares and debentures.
It is India’s first and largest depository of national securities dealing with issues related to paper-based securities settlement such as terrible distribution and delayed transfer of title, etc.
It aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs.

To know about Initial Public Offering (IPO), please refer August 2021 DPN.