NSDL (National Securities Depository Limited) is an Indian company known for securities safekeeping and settlement. It also provides services like e-voting, e-insurance, and e-proxy voting. With a market share of over 95%, it holds more than 3.4 million investor accounts.
Safekeeping and Settlement: A secure platform for transactions and risk minimization.
E-voting and E-proxy Voting: Facilitates electronic voting and proxy voting.
Value-added Services: Includes e-insurance and an online platform for government transactions.
Advantages of NSDL include:
Paperless Transactions: Offers quick, paperless transactions.
Dematerialization of Securities: Allows holding securities in dematerialized form.
Convenience and Efficiency: Provides seamless transactions and reduced paperwork.
NSDL's limitations include:
Settlement Risk: Risk of default by a participant.
Reliance on Intermediaries: NSDL doesn't have branches, so participants must rely on intermediaries.
Account Opening Process: Opening an account with NSDL can be complex.
NSDL is a reliable institution for securities management offering several advantages. However, potential users should be aware of its limitations before opening an account.