How NSDL works?

NSDL works as a financial securities depository in India. A Depository is responsible for holding securities (like shares, debentures, and mutual funds) in electronic form and enabling securities transactions. NSDL interacts with the investors in the capital markets through its depository participants.

NSDL has custody and legal ownership of the financial securities it holds.

NSDL works like a bank but, instead of money, NSDL has the responsibility to safeguard investor securities, bonds, and mutual fund units.