What procedural lapses did NSDL commit that led to a Sebi settlement?

NSDL faced issues with account freezing delays, outsourcing agreements, BSDA compliance, and client securities handling systems.

How much did NSDL pay to settle its case with Sebi?

NSDL settled the case with Sebi for a total of ₹15.58 crore.

What were the key systemic weaknesses found at NSDL by Sebi?

Sebi identified defects in outsourcing contracts and lapses in managing client unpaid securities accounts.

Home / Business and Economy / NSDL Settles Sebi Case for ₹15.58 Crore

NSDL Settles Sebi Case for ₹15.58 Crore

17 Dec

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Summary

NSDL settled a case with Sebi for procedural lapses for ₹15.58 crore.
Sebi identified systemic weaknesses in NSDL's outsourcing agreements.
Defects in BSDA compliance and client securities handling were noted.

The National Securities Depository Limited (NSDL) has reached a settlement with the Securities and Exchange Board of India (Sebi) concerning multiple procedural and systemic deficiencies. The resolution involves a payment of ₹15.58 crore, marking the closure of a case that had identified significant lapses.

Sebi's investigation uncovered several shortcomings within NSDL's operations. These included defects in its outsourcing agreements, with instances of backdated contracts and delays in formalizing essential technology service arrangements. Furthermore, the depository was found to have issues with Basic Services Demat Account (BSDA) compliance and weaknesses in the systems managing client securities.

Specific concerns were raised regarding NSDL's failure to ensure that depository participants effectively converted eligible demat accounts to BSDAs and obtained necessary confirmations. The inspection also highlighted systemic gaps in the handling of client unpaid securities accounts, where securities were released or disposed of beyond regulatory timelines, indicating potential risks to client assets.