NSDL (National Securities Depository Limited) is India’s first and largest depository, established in
1996 to digitize and streamline the settlement of securities. Headquartered in Mumbai and
promoted by institutions like IDBI, NSE, and UTI, NSDL played a pivotal role in transforming India’s
capital markets from paper-based to electronic. Its primary function is to hold and facilitate the
transfer of securities such as equities, debentures, bonds, and mutual fund units in dematerialized
(demat) form.
As of 2025, NSDL manages over 3 crore demat accounts with custody of securities valued at more
than ₹450 lakh crore. It operates through a network of Depository Participants (DPs), including
banks, brokers, and financial institutions. While CDSL dominates in terms of number of retail
accounts, NSDL leads in value and institutional participation, making it the preferred platform for
large investors, custodians, and foreign portfolio investors (FPIs).
In addition to its depository services, NSDL offers a wide range of e-governance and compliance
services such as e-voting, e-KYC, and NSDL e-Gov’s PAN services. It also supports TReDS (Trade
Receivables Discounting System) and acts as a central recordkeeping agency for National Pension
System (NPS), highlighting its importance beyond the stock market.
In 2025, NSDL is preparing for a highly anticipated Initial Public Offering (IPO), expected to raise
capital and provide investors with access to India’s key financial infrastructure entity. The IPO is seen
as a response to CDSL’s earlier listing success and aims to capitalize on the growing investor base and
booming capital markets.
NSDL’s institutional strength, advanced infrastructure, regulatory alignment, and trust built over
decades position it as a backbone of India’s financial markets, offering safe, transparent, and efficient
services for the secure holding and transfer of financial assets.