NSDL – National Securities Depository Limited
National Securities Depository Limited, Headquartered in Mumbai, India, is the first central securities depository in India. It is promoted by Industrial Development Bank of India Limited (IDBI), Unit Trust of India (UTI) and National Stock Exchange of India Limited (NSE).
It was established in November 1996, to overcome the problems with paper-based settlement of trades. Paper-based settlement causes substantial problems such as bad delivery and delayed transfer of title.
How NSDL solved the problem
In the new system, securities are held in the depository account, which is like a bank account. Transfer of ownership can easily be done through simple account transfer. In this way it removed all the paperwork and delay caused by old scheme.