National Securities Depository Limited (NSDL), India’s largest securities depository, is gearing up for a transformative phase as it prepares for its initial public offering (IPO). At the helm of this evolution is CEO Vijay Chandok, who has laid out a clear vision centered on technology, automation, and value-added services to deepen market participation and enhance investor experience.
Key priorities shaping NSDL’s next chapter
- NSDL will invest over Rs 100 crore in FY26 to scale its technology infrastructure
- Automation, cybersecurity, and customer experience are the core pillars of this investment
- The company aims to identify and resolve investor pain points through tailored services
- A three-in-one account model is being developed to integrate banking, trading, and demat services
Technology as a catalyst for transformation
NSDL’s tech strategy is not just about digitization—it’s about redefining operational efficiency and resilience. The company has earmarked significant capital for automation, with the goal of streamlining its operations-heavy business model. This includes:
- Enhancing processing capacity to match growing volumes and asset classes
- Strengthening cybersecurity protocols to ensure system robustness and uptime
- Personalizing services at the depository participant level to improve user experience
The company’s tech investments began during the pandemic, with innovations like e-AGM and a DLT-based platform for covenant monitoring in debt markets. These initiatives have already reshaped how stakeholders interact with financial systems.
Expanding reach through value-added services
NSDL is doubling down on services that go beyond basic depository functions. Its suite includes Speed-e for electronic transaction submissions, STeADY for trade information exchange, and IDeAS for online account access. The company also plans to:
- Launch new tools to support financial literacy, especially in Tier-2 and Tier-3 towns
- Offer AI-powered solutions to help investors make informed decisions
- Expand its Payments Bank offerings to include DBT-linked accounts and prepaid cards
The YUVA plan, which waives settlement fees for young investors under 24 for the first 36 months, is another example of NSDL’s commitment to nurturing the next generation of market participants.
IPO and governance outlook
NSDL’s IPO, opening for subscription from July 30 to August 1, is a pure offer-for-sale (OFS) aimed at complying with SEBI’s 15 percent ownership cap for market infrastructure entities. The price band is set between Rs 760 and Rs 800 per share, with a Rs 76 discount for eligible employees.
Key IPO details:
- Total issue size: Rs 4,011 crore
- Market capitalization expected: Rs 16,000 crore
- Selling shareholders include IDBI Bank, NSE, SBI, HDFC Bank, Union Bank of India, and UTI
Despite the listing, Chandok emphasized that NSDL’s governance framework already mirrors that of a listed entity, with independent boards and regulatory oversight committees in place.
Market leadership and financial performance
NSDL continues to dominate the Indian depository landscape with:
- Rs 464.2 trillion in demat custody value
- 39.4 million active demat accounts
- 97 percent market share in listed debt securities
- 73 percent share in unlisted equities
Between FY22 and FY25, NSDL’s revenue grew at a CAGR of 19 percent, while PAT rose at 21 percent. With over 60 percent of its revenue derived from recurring sources, the company enjoys a stable and resilient financial model.
Looking ahead
CEO Chandok’s roadmap is clear: use technology to build trust, teach financial literacy, and transform capital markets. With a strong foundation and a forward-looking strategy, NSDL is poised to not only retain its leadership but also redefine how India invests.
Sources: Economic Times BFSI, Business India, Business Standard, Mint, MSN News, The Hindu
