The National Securities Depository (or NSDL for short) is India’s central securities depository based in Mumbai. They have now launched a blockchain-based security and covenant monitoring platform.

Transparency is an important reason for blockchain growth

This new platform was launched during the presentation of the 25th anniversary. The platform is expected to strengthen monitoring of security and governance in the corporate bond market in order to bring ‘further discipline and transparency to the market’ in this way.

The transparency that the blockchain offers is a hugely important reason for the popularity of the technology. However, the technology is not yet fully welcomed by the Indian authorities, due to the anonymity feature that is also offered. India’s Securities and Exchange Board reports the following:

“This is the biggest differentiator between private DLT manifestations and what we commonly refer to as central bank digital currencies, where this aspect of the technology is not intended to be used because we don’t want anonymity.”

Network maintenance

The new network is reportedly serviced by 2 nodes, which are the NSDL and the Central Depository Services Ltd. (CDSL), a SEBA division, will monitor. In addition, other entities will also have the opportunity to join the network and establish their nodes on it in the future.

The oldest custodian of India is the NSDL. They currently control approximately 89% of the country’s securities market. Now all its data, previously stored in centralized databases, is cryptographically signed, timestamped, and added to the ledger. This process can be significantly improved via blockchain technology.


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