National Securities Depository Limited- NSDL
+21.5 % 1 MAbout National Securities Depository Limited- NSDL
A Comprehensive Overview of Price & Journey
Understanding National Securities Depository Limited- NSDL Inception and Growth
Overview
NSDL or National Securities Depository Limited is a Depository or financial entity that has been established to hold all securities as tangible or non-physical certificates. NSDL was established in August 1996, and it stands as one of the largest depositories in the world, managing most of the securities held and settled in dematerialized form within the Indian capital market.
Despite India’s dynamic capital market, which spans over a century, the reliance on paper-based settlement methods posed significant challenges. The implementation of the Depositories Act in August 1996 laid the groundwork for NSDL’s establishment.
As a SEBI-registered Market Infrastructure Institution (MII), NSDL has been instrumental in shaping India’s capital markets, pioneering the concept of dematerialization of securities. NSDL rolls out T+0 Settlement India, the first Nation to introduce T+0 Settlement (Beta Implementation) in April 2002, T+3, April 2003, T+2, April 2023, T+1, April 2024, T+0.
Using innovative and advanced technology systems, NSDL works to support the investors and brokers in the capital market in India. NSDL aims at ensuring the safety and providing the soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs.
NSDL play a central role in developing products and services that will continue to nurture the growing needs of the financial services industry and capital markets. In the depository, securities are held in depository accounts, which are like holding funds in bank accounts.
Transfer of ownership of securities is done through simple account transfers and this helps in mitigating all the risks and hassles normally associated with paperwork. Consequently, the cost involved in transacting in a depository is considerably lower as compared to transacting in certificates.
NSDL has established a strong leadership position in the Foreign Portfolio Investors (FPI) business in India. Currently, around 11,200 FPIs are registered with NSDL which constitutes 99.99% market share of the FPI holdings.
The plus point for NSDL is that IDBI Bank Ltd. hold more than 26% in the NSDL, and along with it National Stock Exchange (NSE) holds more than 24% in NSDL. Some other holders include HDFC Bank Ltd, which holds more than 8.95% and the Unit Trust of India with 6.83% stake.
Services Offerings
Basic Services: NSDL provides various services to its investors, banks, brokers and other security issuers participating in the Indian financial market. Any investor, broker or intermediary who wants to avail services of NSDL, is required to open a depository account with DPs.
Account Maintenance
Dematerialisation
Rematerialisation
Market Transfers
Off-Market Transfer
Inter-Depository Transfer
Margin Pledge
Transmission / Nomination
Corporate Action
Value-added Services: NSDL provides various other services like hypothecation of securities, pledges, automatic delivery of securities to clearing corporations, distribution of various cash and non-cash benefits, stock lending, demat of NSC/KVP, demat of warehouse receipts, etc. Some of the services provided are as under:
Pledge or Hypothecation of securities
Automatic Delivery Out Instructions
Dividend Distribution
Lending and borrowing
Public Issue
SMS Alert
NSDL CAS (Consolidated Account Statement)
Board of Directors
-
Mr. Parveen Kumar Gupta Former MD (Retail & Digital Banking) of State Bank of India
-
Dr. Madhu Sudan Sahoo Advocate, Dr. Sahoo Regulatory Chambers
-
Ms. Sripriya Kumar (Partner, SPR & Co., Chartered Accountants)
-
Mr. Sriram Krishnan (Chief Business Development Officer-NSEIL
-
Prof. Rajat Moona (Director - Indian Institute of Technology Gandhinagar)
-
Mr. Shailendra Nadkarni Executive Director, IDBI Bank Limited
-
Ms. Padmaja Chunduru MD & CEO, National Securities Depository Limited
Capital Markets in India
Indian economy contributes at large in the world economy and hence the role of capital markets or the share markets of India increased which form a considerable portion of the world economy. The capital market is very important to the financial system because due to that the economy runs at a faster pace because financial markets contribute very highly to the economy.
India, as one of the fastest growing and largest emerging economies in the world, thus has a huge potential to leverage its capital markets to achieve its ambitious target of reaching a $7 trillion economy by 2030.
Capital markets are important for capital formation and for rapid economic and technological development. Adequate capital formation is necessary.
The importance of the capital market in economic development is explained below:
-
Mobilization Of Savings and Acceleration of Capital Formation
-
Raising Long-Term Capital
-
Promotion Of Industrial Growth
-
Ready And Continuous Market
-
Technical Assistance
-
Reliable Guide to Performance
-
Proper Channelization of Funds
-
Provision Of a Variety of Services
-
Development Of Backward Areas
Some of the benefits to be availed from NSDL services are:
Delivery assurance: Demat accounts maintained with NSDL allow investors to check and verify the assets held in electronic form in their Demat account and any purchase or sale of securities.
No risk: As NSDL maintains securities electronically in Demat accounts, there is no risk of loss, destruction, theft, or mutilation of certificates.
No stamp duty: Securities that are transferred via depositories do not attract any stamp duty, thereby saving the cost of investment to the investors.
Easy and Quick transfer and registration: As soon as security is transferred into an investor’s account, he/she become its legal owner. This eliminates the lengthy process and risk associated with approaching the company registrar for ownership transfer.
Reduced Paperwork: With the Demat accounts, a lot of paperwork gets reduced and this results in further reduction of brokerage charges to the investors. It also reduces the need to maintain various types of documents that are related to securities transactions of buying and selling.
Account statements: Investors can regularly inspect or check the account statements with details of transactions done by the investors as well as the holdings in their accounts.
Easy transmission: Securities held in demat accounts can be easily transmitted by checking relevant documentation to the depository participants.
IPO access: Investors are always eager for IPOs and NSDL helps them to get access to IPOs on the stock market through the NSDL portal. This helps in a stress-free investment process for the IPO to the investors.
Dividend Details
NSDL has declared a dividend of Rs. 1 per equity share, of the face value of Rs. 2 each, for the financial year ending March 31, 2024
NSDL IPO Plans
NSDL filed the Draft Red Herring Prospectus (DRHP) with the SEBI. This development marks a crucial step towards public offering, reflecting their commitment to growth. SEBI approval for the DRHP is awaited.
NSDL Share Price and Investment Insights:
For NSDL share price interested investors, it's significant to monitor the NSDL share price today and NSDL share price live updates. The NSDL share price chart can give you a detailed price history about price movements so that you can make informed decisions. Moreover, you can monitor the NSDL share price in the NSE NSDL share price listings for updated information. Investors can also check the NSDL share price today live for current data on price movement.
If you are thinking of investing, always check the NSDL share price NSE for the most recent and accurate trading information, or visit the NSDL share list to view how NSDL shares are performing in the market.
NSDL Subsidiary and Associate Companies
NSDL Database Management Limited - Subsidiary
NSDL Payments Bank Limited - Subsidiary
India International Bullion Holding IFSC Limited - Associate
Peer Details
Central Depository Services Limited (CDSL) is a peer company operating in the same business line.
Milestones of NSE
March 2024: Launch of Beta version of T + 0 rolling settlement cycle in the equity market
March 2024: Market ka Eklavya crosses 1,000+ programs
February 2024: The value of securities held in the dematerialized form at NSDL crosses $5 trillion
January 2024: NSDL gets GLEIF accreditation for Legal Entity Identifier (LEI) issuance in India
SHOW MORE...
Overview
NSDL or National Securities Depository Limited is a Depository or financial entity that has been established to hold all securities as tangible or non-physical certificates. NSDL was established in August 1996, and it stands as one of the largest depositories in the world, managing most of the securities held and settled in dematerialized form within the Indian capital market.
Despite India’s dynamic capital market, which spans over a century, the reliance on paper-based settlement methods posed significant challenges. The implementation of the Depositories Act in August 1996 laid the groundwork for NSDL’s establishment.
As a SEBI-registered Market Infrastructure Institution (MII), NSDL has been instrumental in shaping India’s capital markets, pioneering the concept of dematerialization of securities. NSDL rolls out T+0 Settlement India, the first Nation to introduce T+0 Settlement (Beta Implementation) in April 2002, T+3, April 2003, T+2, April 2023, T+1, April 2024, T+0.
Using innovative and advanced technology systems, NSDL works to support the investors and brokers in the capital market in India. NSDL aims at ensuring the safety and providing the soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs.
NSDL play a central role in developing products and services that will continue to nurture the growing needs of the financial services industry and capital markets. In the depository, securities are held in depository accounts, which are like holding funds in bank accounts.
Transfer of ownership of securities is done through simple account transfers and this helps in mitigating all the risks and hassles normally associated with paperwork. Consequently, the cost involved in transacting in a depository is considerably lower as compared to transacting in certificates.
NSDL has established a strong leadership position in the Foreign Portfolio Investors (FPI) business in India. Currently, around 11,200 FPIs are registered with NSDL which constitutes 99.99% market share of the FPI holdings.
The plus point for NSDL is that IDBI Bank Ltd. hold more than 26% in the NSDL, and along with it National Stock Exchange (NSE) holds more than 24% in NSDL. Some other holders include HDFC Bank Ltd, which holds more than 8.95% and the Unit Trust of India with 6.83% stake.
Services Offerings
Basic Services: NSDL provides various services to its investors, banks, brokers and other security issuers participating in the Indian financial market. Any investor, broker or intermediary who wants to avail services of NSDL, is required to open a depository account with DPs.
Account Maintenance
Dematerialisation
Rematerialisation
Market Transfers
Off-Market Transfer
Inter-Depository Transfer
Margin Pledge
Transmission / Nomination
Corporate Action
Value-added Services: NSDL provides various other services like hypothecation of securities, pledges, automatic delivery of securities to clearing corporations, distribution of various cash and non-cash benefits, stock lending, demat of NSC/KVP, demat of warehouse receipts, etc. Some of the services provided are as under:
Pledge or Hypothecation of securities
Automatic Delivery Out Instructions
Dividend Distribution
Lending and borrowing
Public Issue
SMS Alert
NSDL CAS (Consolidated Account Statement)
Board of Directors
-
Mr. Parveen Kumar Gupta Former MD (Retail & Digital Banking) of State Bank of India
-
Dr. Madhu Sudan Sahoo Advocate, Dr. Sahoo Regulatory Chambers
-
Ms. Sripriya Kumar (Partner, SPR & Co., Chartered Accountants)
-
Mr. Sriram Krishnan (Chief Business Development Officer-NSEIL
-
Prof. Rajat Moona (Director - Indian Institute of Technology Gandhinagar)
-
Mr. Shailendra Nadkarni Executive Director, IDBI Bank Limited
-
Ms. Padmaja Chunduru MD & CEO, National Securities Depository Limited
Capital Markets in India
Indian economy contributes at large in the world economy and hence the role of capital markets or the share markets of India increased which form a considerable portion of the world economy. The capital market is very important to the financial system because due to that the economy runs at a faster pace because financial markets contribute very highly to the economy.
India, as one of the fastest growing and largest emerging economies in the world, thus has a huge potential to leverage its capital markets to achieve its ambitious target of reaching a $7 trillion economy by 2030.
Capital markets are important for capital formation and for rapid economic and technological development. Adequate capital formation is necessary.
The importance of the capital market in economic development is explained below:
-
Mobilization Of Savings and Acceleration of Capital Formation
-
Raising Long-Term Capital
-
Promotion Of Industrial Growth
-
Ready And Continuous Market
-
Technical Assistance
-
Reliable Guide to Performance
-
Proper Channelization of Funds
-
Provision Of a Variety of Services
-
Development Of Backward Areas
Some of the benefits to be availed from NSDL services are:
Delivery assurance: Demat accounts maintained with NSDL allow investors to check and verify the assets held in electronic form in their Demat account and any purchase or sale of securities.
No risk: As NSDL maintains securities electronically in Demat accounts, there is no risk of loss, destruction, theft, or mutilation of certificates.
No stamp duty: Securities that are transferred via depositories do not attract any stamp duty, thereby saving the cost of investment to the investors.
Easy and Quick transfer and registration: As soon as security is transferred into an investor’s account, he/she become its legal owner. This eliminates the lengthy process and risk associated with approaching the company registrar for ownership transfer.
Reduced Paperwork: With the Demat accounts, a lot of paperwork gets reduced and this results in further reduction of brokerage charges to the investors. It also reduces the need to maintain various types of documents that are related to securities transactions of buying and selling.
Account statements: Investors can regularly inspect or check the account statements with details of transactions done by the investors as well as the holdings in their accounts.
Easy transmission: Securities held in demat accounts can be easily transmitted by checking relevant documentation to the depository participants.
IPO access: Investors are always eager for IPOs and NSDL helps them to get access to IPOs on the stock market through the NSDL portal. This helps in a stress-free investment process for the IPO to the investors.
Dividend Details
NSDL has declared a dividend of Rs. 1 per equity share, of the face value of Rs. 2 each, for the financial year ending March 31, 2024
NSDL IPO Plans
NSDL filed the Draft Red Herring Prospectus (DRHP) with the SEBI. This development marks a crucial step towards public offering, reflecting their commitment to growth. SEBI approval for the DRHP is awaited.
NSDL Share Price and Investment Insights:
For NSDL share price interested investors, it's significant to monitor the NSDL share price today and NSDL share price live updates. The NSDL share price chart can give you a detailed price history about price movements so that you can make informed decisions. Moreover, you can monitor the NSDL share price in the NSE NSDL share price listings for updated information. Investors can also check the NSDL share price today live for current data on price movement.
If you are thinking of investing, always check the NSDL share price NSE for the most recent and accurate trading information, or visit the NSDL share list to view how NSDL shares are performing in the market.
NSDL Subsidiary and Associate Companies
NSDL Database Management Limited - Subsidiary
NSDL Payments Bank Limited - Subsidiary
India International Bullion Holding IFSC Limited - Associate
Peer Details
Central Depository Services Limited (CDSL) is a peer company operating in the same business line.
Milestones of NSE
March 2024: Launch of Beta version of T + 0 rolling settlement cycle in the equity market
March 2024: Market ka Eklavya crosses 1,000+ programs
February 2024: The value of securities held in the dematerialized form at NSDL crosses $5 trillion
January 2024: NSDL gets GLEIF accreditation for Legal Entity Identifier (LEI) issuance in India
About National Securities Depository Limited- NSDL
IPO Details, Price movement
Performance Highlights 2023-24
-
Revenue from Operations increased to 1,268.24 crore in FY 2023-24 as compared to 1,021.99 crore in the previous year, a growth of 24.1 %.
-
Profit Before Tax and Exceptional Items increased to 354.95 crore in FY 2023-24 as compared to 305.04 crore in the previous year.
-
Profit After Tax (PAT) increased to 275.44 crore in FY 2023-24 as compared to 234.81 crore in the previous year, a growth of 17.3%.
-
Earnings per Share (EPS) of the Company increased to 13.77 in FY 2023-24 as compared to 11.74 in the previous year.
-
The net worth of the Company as of March 31, 2024, increased by 17.9% to 1,684 crores as compared to 1,429 crores a year ago.
-
Participation from the retail investors translated into active Demat Accounts increasing from 13.15 crore in FY 2022-23 to 13.58 crore as of March 31, 2024, for NSDL. The Demat custody value crossed $ 5 trillion during the year.
Fundamentals
Financials
All values are INR Cr except per share value
| P&L Statement | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | 761.11 | 1021.99 | 1268.24 |
| Other Income | 60.18 | 77.83 | 97.46 |
| Gross Profit | 821.29 | 1099.81 | 1365.71 |
| Total Expense | 520.58 | 766.73 | 983.21 |
| EBIDTA | 300.71 | 333.09 | 382.50 |
| D&A | 18.93 | 21.69 | 24.12 |
| EBIT | 281.78 | 311.40 | 358.37 |
| Interest Expense | 2.18 | 1.52 | 2.06 |
| PBT | 278.20 | 305.04 | 354.95 |
| TAX | 65.61 | 70.23 | 79.51 |
| PAT | 212.59 | 234.81 | 275.44 |
| Diluted EPS | 10.63 | 11.74 | 13.77 |
| Basic EPS | 10.63 | 11.74 | 13.77 |
| Total income | 821.29 | 1,099.82 | 1,365.70 |
ASSETS
| CURRENT ASSETS | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash and Cash Equivalents | 144.46 | 185.70 | 106.01 |
| Trade Payables | 102.24 | 85.63 | 83.14 |
| Other Current Assets | 553.65 | 564.17 | 441.43 |
| Total Current Assets | 800.35 | 835.50 | 630.58 |
| NON CURRENT ASSETS | 2022 | 2023 | 2024 |
|---|---|---|---|
| Plant Property and Equipment | 35.33 | 49.74 | 266.99 |
| Long Term Investment | 820.79 | 1157.97 | 1307.07 |
| Other Non Current Assets | 36.28 | 50.28 | 53.10 |
| Total Non Current Assets | 892.40 | 1,257.99 | 1,627.16 |
| Total Assets | 1,692.75 | 2,093.49 | 2,257.74 |
|---|
| CURRENT LIABILITES | 2022 | 2023 | 2024 |
|---|---|---|---|
| TRADW Payable | 25.25 | 61.19 | 69.64 |
| Other Current Liab | 443.99 | 578.55 | 481.94 |
| NON CURRENTLIABILITIES | 2022 | 2023 | 2024 |
|---|---|---|---|
| Deffered Tax Liab | 0.22 | 0.01 | 0.07 |
| Other Non Current Liab | 11.68 | 24.86 | 21.99 |
LIABILITIES
| EQUITY | 2022 | 2023 | 2024 |
|---|---|---|---|
| Share Capital | 40.00 | 40.00 | 40.00 |
| Other Equity | 1171.62 | 1388.86 | 1644.10 |
| Total Equity | 1,211.62 | 1,428.86 | 1,684.10 |
| Total Liabilities & Equity | 1,211.62 | 1,428.86 | 1,684.10 |
|---|
| CASH FLOW STAT | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| Cash Flow from operating | - | 147.65 | 327.00 | 112.88 |
| Cash Flow from financing | - | -20.00 | -20.00 | -20.00 |
| Cash Flow from investing | - | -64.32 | -374.80 | -172.57 |
| Net cash flow | 0.00 | 63.33 | -67.80 | -79.69 |
Revenue Growth
PAT Growth %
EPS Growth %
TOTAL ASSETS Growth %
QUICK RATIO Growth %
LONG TERM DEBT TO EQUITY RATIO Growth %
Shareholding Pattern
2026
| Name | Designation | Share % |
|---|---|---|
| IDBI Bank Ltd. | NA | 26.10% |
| National Stock Exchange Of India Limited | NA | 24.00% |
| HDFC Bank Limited | NA | 8.95% |
| Unit Trust Of India | NA | 6.83% |
| Others | NA | 34.12% |
Events
| Name | Date | Details |
|---|---|---|
| No events available. | ||
Frequently Asked Questions
- The lockin period is of 6 months for pre-ipo investors i.e. they cannot sell their shares for 6 months after they get listed. However, they can definitely sell the shares in pre-ipo market before they get listed.
With BharatInvest, you can now invest in unlisted/pre-ipo shares with as low as 25-50k depending upon the share.
- 1. You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
- 2. Credit of Unlisted Shares/Pre-IPO shares can be checked in brokers application as well but it takes T+2 days to show the shares.
- The value of share in unlisted space is determined in the same way as it is done in listed market. Demand and supply decide the price of any share. If the demand more than the supply, then the prices of the share increases and vice versa.
- When a new shares is introduces in the unlisted space, the value of the company is decided upon the last funding raised by company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
- A Public Unlisted Shares Is Not Listed on Stock Exchange, Where as a Listed Public Company Is Listed On Stock Exchange Such As BSE Or NSE For Trading Of Shares.
- If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unli sted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.
- If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 12.5% without indexation benefits.
- After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.
- Absoluetly NOT! Grey market is all about speculation relation to open price, subscription rate etc. And does not include physical delivery of shares. Whereas in pre ipo market you get to invest in shares much before the ipo too and it involves physical delivery of shares. It is compeletly legal and does not include any such speculation.
- Existing stakeholders, promoters or employees who have equity shares of an unlisted company and early investors who wish to get value of their investment.
- Yes, investing in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market.