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8/6/2019 Nsdl Functions and Its Demat Participants
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ABOUT NSDL:
First depository in India. Registered on June 7, 1996.
Commenced operation in November 1996.
Formed under companies act, 1956. Withpaid up capital of Rs 105cr.
Aims at ensuring safety and soundness of
Indian capital market.
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SHAREHOLDERS
State Bank of India
HDFC Bank Limited
Deutsche Bank A.G.
Axis Bank Limited
Citibank N.A. Standard Chartered Bank
The Hongkong and Shanghai BankingCorporation Limited
Oriental Bank of Commerce Union Bank of India
Dena Bank
Canara Bank
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BOARD OF DIRECTORS
Dr. R. H. Patil
ChairmanThe Clearing Corporation of India Limited Chairman
Mr. Gagan RaiNational Securities Depository LimitedManaging
Director & CEO
Mr. Ravi NarainManaging DirectorNational Stock Exchange of India Limited Director
Mr. P. P. Vora
Former Chairman & Managing DirectorIndustrial Development Bank of India Limited
(Now, IDBI Bank Ltd.) Director
Mr. Bansi S Mehta
Chartered Accountant, Chief MentorM/s Bansi S. Mehta & Co. Director
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Mr. Sudesh PunhaniFormer Director (Finance)National Aviation Company of India Limited Directo
Dr. Rajiv B. Lall
Managing Director & CEOInfrastructure Development Finance CompanyLimited Directo
Dr. Prakash G ApteFormer Director
Indian Institute of Management, Bangalore Director Mr. R.K. Bansal
Executive DirectorIDBI Bank Limited Director
Mr. S.S. Ranjan
Deputy Managing Director & CFOState Bank of India Director
Mr. Kaushik ShapariaManaging DirectorGlobal Transaction Banking Head, India
Deutsche BankDirector
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NSDL interacts with investors and
clearing members through market
intermediaries called depositoryparticipants. NSDL performs a wide
range of securities related function
through Depository participants.
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Maintenance of individual investorsbeneficial holdings in the electronic
form. Dematerialization i.e. converting physical
certificates into their electronic form
Rematerialization i.e. converting
securities in DeMat form into physicalcertificates
Effects settlement of securities traded onthe exchanges.
Carries out settlement of trades not doneon the stock exchange (off-markettrades).
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Transfer of securities.
Stock Lending and Borrowing.
Pledging/hypothecation of dematerialised
securities.
Electronic credit in public offerings of
companies or corporate actions.
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Two depositories in India NSDL (National Securities Depository
Limited)
CDSL (Central Depository ServiceLimited)
Free transferability of Public ltd. Co
Dematerialising the securities in
depository mode.
Providing ownership record in book entryform.
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Depositories Bank
Hold securities in an account Hold funds in an account
Transfer securities between
accounts on the instruction of theaccount holder
Transfers funds between accounts
on the instruction of the accountholder
Assist in transfer of ownershipwithout having to handle securities
Assist in transfers without having tohandle money
Facilitates safekeeping of shares Facilitates safekeeping of money
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FEW DEPOSITORIES ARE:
Bank of India
Bank of Baroda
Kotak securities
Motilal Oswal
Reliance Capital
UTI
Yes Bank
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Services provided by NSDL and CDSL are
carried out through their agents known as
Depository Participants [DPs]. DPs are
appointed by depositories after anapproval from SEBI. According to SEBI
regulations, 3 categories of entities such as
banks, financial institutions, and SEBI
registered trading members qualify forbecoming DPs
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Benefits of Depository System
Safety
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Benefits of Depository System Elimination of bad deliveries Elimination of all risks associated with
physical certificates- No stamp duty Immediate transfer and registration of
securities
Faster settlement cycle Faster disbursement of non cash corporate
benefits like rights, bonus, etc Reduction in brokerage by many brokers for
trading in dematerialised securities
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Reduction in handling of huge volumes
of paper
periodic status reports to investors ontheir holdings and transactions, leading
to better controls.
Elimination of problems related totransmission of demat shares
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SAFTEY
All investors have a right to receive their
statement of accounts periodically fromthe DP
There are periodic inspections into theactivities of both DP and R&T agent byNSDL. This also includes records based onwhich the debit/credit are effected
Computer and communication
infrastructure Machine level back-up
Disaster back up site
Periodic Review
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