Role of CDSL and NSDL in India's Financial Markets

What is the function of CDSL and NSDL in India?

A depository is an entity that holds tradable instruments, such as shares and bonds, electronically. In India, regulated by SEBI (Securities and Exchange Board of India), we have two central depositories: Central Depository Services India Limited (CDSL) and National Securities Depository Limited (NSDL). When companies opt for an Initial Public Offering (IPO) with a size exceeding ₹10 crore, they're required to offer their shares in a dematerialised format. Once allotted, these shares are held electronically in the depository system. 

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