NSDL Full Form

NSDL full meaning is National Security Depository Limited. It is an Indian Central Security Depository under the sovereignty of the Ministry of Finance, Government of India based in Mumbai. It is India's first electronic securities depository with national coverage. NSDL was established in August 1946 based on recommendations by a national institution responsible for the economic development of India.

NSDL, one of the largest depositories in the World has established ultramodern infrastructure that manages most of the securities held and settled in dematerialization form in an Indian Market. Although India has an active security market that is well-established, the paper-based settlement of trade causes significant issues like bad delivery, and delayed transfer of tile, etc. The enactment of the Depository Act in August 1946 facilitated the establishment of NSDL.

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NSDL Long Form and Work

NSDL full form is National Security Depository Limited Bank. Using a state-of-the-art and flexible technology system, NSDL assists the brokers and investors in the capital market of the country. NSDL aims to ensure the safety and soundness of an Indian marketplace by developing settlement solutions that enhance efficiency, minimize risk, and reduce cost. 

NSDL plays an important role in developing products and services that will continue to foster the growing requirement of the financial service industry. In the depository system, securities are held in a depository account, which is more or less similar to holding funds in a bank account. Transfer of ownership of securities is done through simple account transfer, This method minimizes all the risk and hassles usually related to the paperwork. Therefore, the cost of transacting in a depositional environment is considerably low as compared to transacting in certificates.

NSDL provides a wide range of services to stockbrokers, custodians, stock exchanges, issue companies, etc through its network of 270 Depository Participants/Business Partners.

NSDL Promoter/Shareholders

NSDL is promoted by the Industrial Development Bank of India, Government of India, Union Trust of India, and National Stock Exchange of India Limited. Some of the popular banks in India have taken a stake in NSDL.

Other Shareholders

• Axis Bank

• Bank of Baroda

• Canara Bank

• Citi BaNK

• Deutsche Bank

• HDFC Bank

• HSBC Bank India

• Punjab National Bank

• Standard Chartered Bank

• State Bank of India

NSDL Basic Services

Under the provision of the Depository Act, NSDL provides distinct services to investors and other participants in the capital market like stock exchange, clearing member, and issuers of securities. This includes basic services like dematerialization, rematerialization, account maintenance, settlement of trades through market transfer, off-market transfers, inter depository transfer, distribution of non-cash corporate action, and transmission/ nomination.

NSDL Value Added Service

The depository is a service for holding security electronically in which security transactions are carried out through book entry. Along with the basic service of electronic custody and trade settlement services, NSDL offers value-added services such as hypothecation of securities, pledge, automatic delivery of securities to the electronic corporation, distribution of cash and noncash corporate benefits (Bonus, Rights, IPOs, etc), Demat of NSC/KVC, Demat of the warehouse receipt, Stock lending, and internet-based services such as SPEED-e, and IDeAS.

NSDL also offers services that enable brokers to deliver contract notes to custodians and/ or fund managers electronically. This service is known as STEADY (Security Trading-information Easy Access and Delivery). The service STEADY was launched by NSDL on November 30, 2002. It enables the transmission of single trade information digitally with encryption across market participants electronically through the internet.

NSDL Full Name And Benefits

NSDL's full name is National Security Depository Limited. 

The ownership and transfer of securities in Depository Participants take place through electronic book entries. At the start, the system eliminated the insecurities in the capital market related to managing papers. NSDL offers various direct and indirect benefits like:

• Elimination of Bad Deliveries

• Elimination of all risk associated with the physical certificate

• Immediate transfers and registration of securities

• Faster settlement cycle

• Easy portfolio management

• Elimination of all risks associated with transmission of Demat shares.

• Reduction in managing huge volumes of paper

• Periodic Status Report

• Elimination of all issues related to the change of address of investors

• Elimination of all issues related to selling securities on behalf of minors

• An immediate outlay of non-cash corporate benefits like rights, bonus, etc.

• Reduction in brokerage charges by many brokers for trading in dematerialized securities.

NSDL Mobile Application

With mobile being ubiquitous in today’s era, NSDL has launched a mobile application named “NSDL Speede” for investors. You may use NSDL Speede mobile app used to-

• View your Demat account balance anytime, anywhere.

• Participation in e-voting,

• Register for IDeAS,

• Give confirmation of e-Dis.

This mobile app offered by NSDL is completely free for all NSDL Demat account holders. 

NSDL Speede mobile app can be easily downloaded from Google Play Store and Apple App Store.

NSDL Bank Full Form

NSDL bank full form is National Security Depository Limited. RBI issued a license to NSDL on October 28, 2018, to operate as a payment bank in India under section 22 (1) of the Banking Regulation Act 1949 to carry payment transactions.