Regulatory Reset: NSDL Settles SEBI Non-Compliance Case Amicably

Image Source: Business Standard

National Securities Depository Limited (NSDL) has received SEBI’s nod to settle a regulatory case related to inspection-related non-compliances in FY2023–24. As per approved Revised Settlement Terms, NSDL must pay ₹15.57 crore within 30 days and adhere to non-monetary compliance terms. The company stated no material impact on operations.

The National Securities Depository Limited (NSDL) has announced that the Securities and Exchange Board of India (SEBI) has accepted its revised settlement proposal under the SEBI (Settlement Proceedings) Regulations, 2018, related to certain procedural non-compliances identified during SEBI’s inspection for the financial year 2023–24.

According to NSDL, the capital market regulator communicated its acceptance of the proposed settlement via email dated October 17, 2025. This acceptance follows the recommendation of the High-Powered Advisory Committee (HPAC), which reviewed and endorsed the company’s Revised Settlement Terms (RST).

Key developments and highlights:

SEBI has agreed to accept the terms recommended by HPAC under Regulations 28 and 31 of the Settlement Proceedings Regulations, 2018.
NSDL is required to pay a total settlement amount of ₹15,57,60,000 within 30 calendar days from the date of the SEBI communication.
The regulator has also directed the company to fulfil any non-monetary obligations, though specific details were not disclosed.
The action stems from non-compliances noticed during SEBI’s inspection of NSDL’s operations in FY2023–24.
NSDL clarified that the settlement has no material impact on its financial position, operations, or other activities.

This regulatory settlement marks closure to a set of audit observations raised during SEBI’s periodic inspection processes, a standard oversight exercise to ensure market infrastructure institutions adhere to operational and disclosure norms. Accepting settlement terms allows entities to resolve proceedings without admission or denial of guilt while ensuring timely compliance and penalty payment.

While NSDL’s statement assures stakeholders of no major financial or operational implications, the regulator’s decision reinforces SEBI’s commitment to tightening compliance among key market intermediaries. The settlement framework under SEBI’s 2018 regulations continues to provide an avenue for pragmatic resolution of procedural lapses, preserving both regulatory integrity and market stability.

Sources: Company filing to BSE; SEBI communication; Press Trust of India.

Stay Ahead – Explore Now!