The National Securities Depository Ltd (NSDL) resolved a regulatory case with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹3.12 crore. The issue involved alleged violations of the SEBI (Depositories and Participants) Regulations, 2018. NSDL was accused of failing to address grievances from participants and beneficial owners within 30 days, as required by Regulation 7(g), and violating the Code of Conduct under the same rules, both before and after August 28, 2023.
To avoid further litigation, NSDL proposed a settlement without admitting or denying any wrongdoing. SEBI accepted the terms, and the adjudication proceedings were officially closed following the receipt of the settlement amount on October 14, 2024.
This regulatory development follows NSDL’s recent progress towards its much-anticipated initial public offering (IPO). The depository received SEBI’s approval for the IPO in late September 2024, more than a year after submitting its preliminary proposal in July 2023. The IPO will be a complete offer for the sale of more than 5.72 crore equity shares by several key shareholders, including the National Stock Exchange (NSE), State Bank of India (SBI), and HDFC Bank, according to the draft red herring prospectus.
NSDL, a key player in India’s financial ecosystem, has been instrumental in transforming the securities market since the introduction of the Depositories Act in 1996. It pioneered the dematerialization of securities, launching the country’s first electronic depository service in November 1996. Today, the organization offers a range of services to support financial markets, including account maintenance, settlement of securities, and value-added services for participants.
This case closure is a strategic move for NSDL as it shifts focus on its upcoming IPO, which is expected to unlock value for its shareholders and further solidify its market position.