The National Securities Depository (NSDL) situated in Mumbai, has established a blockchain-based security and covenant monitoring tool.
NSDL and the Securities and Exchange Board of India jointly announced the distributed ledger technology (DLT) platform, during their 25th-anniversary presentation (SEBI). The platform is designed to improve corporate bond market security and governance monitoring, bringing additional discipline and transparency to the market.
SEBI Chairperson Madhabi Puri Buch emphasized blockchain‘s transparency as a crucial reason for its popularity, but expressed reservations about the technology’s current cost-effectiveness and said that the anonymous aspect is still strongly unwelcomed by Indian authorities:
This is the single most important distinction between private DLT expressions and what we often describe as Central Bank Digital Currencies, where this component of the technology is not expected to be used since we do not want anonymity.
Two nodes will maintain the network, which will be controlled by the NSDL and the Central Depository Services Ltd. (CDSL), a SEBA division. Other entities will be able to join the network and establish nodes in the future, as Buch stated.
The oldest depository in India, NSDL, holds 89 percent of the country’s securities market. All of the company’s formerly centralized data will now be cryptographically signed, time-stamped, and added to the ledger.
About National Securities Depository Limited
The National Securities Depository Limited (NSDL) is a Mumbai-based Indian central securities depository. It was founded in August 1996 as India’s first electronic securities depository with nationwide coverage. It was founded on the recommendation of a national agency in charge of India’s economic development. Its demat accounts now hold $4 trillion in assets.
Through its nationwide network of Depository Participants or DPs and digital platforms, NSDL provides a comprehensive range of services to investors, stock brokers, custodians, issuer firms, Saving account current account Business correspondence, and so on.
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