In the Depository System, Companies Issuing Securities Are Called ‘Issuers.’
NSDL’s ‘Cash Benefit Services’ facilitates the issuer by providing end to end solution for making the interest and redemption payments on outstanding bonds and non-convertible debentures. It is an extension of existing online non-cash corporate action for issuance of securities like Commercial Paper, Debts, NCD, etc Currently, NSDL processes interest payments for Government Bonds (GSec) and Sovereign Gold Bonds (SGB) on behalf of RBI and makes payments to investors holding Gsec and SGB in demat accounts in NSDL.
Only securities admitted into the NSDL system can be dematerialised or allotted electronically. Before a security can be included in the NSDL system, the issuer must establish electronic connectivity with the depository system. This can be done either directly or through a Registrar and Transfer Agent (RTA) that already has connectivity with NSDL. Once registered, issuers can log in using the provided credentials, enabling them to efficiently handle various activities related to issuer and securities admission.
Dematerialisation of Securities With NSDL Offers Issuers Many Advantages like:
- Cost and time savings: Issuing and managing physical certificates involve printing, storage, distribution and replacement costs. Demat accounts eliminate these handling expenses, leading to significant cost savings for issuers.
- Reduced risk of loss or theft: Demat accounts with NSDL eliminate the risks associated with physical certificates, such as loss, theft, mutilation, forgery or misuse.
- Safe and secure transactions: The NSDL platform is highly secure and offers multiple layers of protection to ensure the safety of securities. We use state-of-the-art technology and security protocols to safeguard the securities holdings and prevent any unauthorised access.
- Efficient handling of corporate actions: With the NSDL demat account, issuers can efficiently handle non-cash corporate actions, including rights, bonus issues, subdivision of holdings and IPOs. The entire process is hassle-free and cost-effective.
- Quick and low-cost processing: With NSDL's demat accounts, issuers process various securities transactions, including conversions and issuances, swiftly and cost-effectively. This ensures better operational efficiency and reduced administrative burdens.
- Centralised Database for real-time information: NSDL maintains a centralised database. This provides issuers with up-to-date information on any changes in the holding pattern of securities.
