NSDL settles Sebi case on operational lapses for ₹15.58 crore

Key Highlights

• In some instances, it said, NSDL froze accounts after unfreezing instructions had already been issued, while in others it took up to 77 days to implement Sebi’s directions.
• The regulator said these lapses bypassed safeguards designed to restrict trading by non-compliant promoters and protect the interests of investors.
• Sebi’s inspection also found shortcomings in NSDL’s outsourcing arrangements, including backdated contracts with vendors and delays in formalizing agreements for core technology services.
• In one case, an outsourcing contract was signed a year after the relevant period had ended, raising concerns around oversight of critical IT functions at one of India’s key market utilities.
• Sebi found NSDL had failed to ensure that depository participants effectively converted eligible demat accounts into BSDAs or obtained opt-out confirmations from beneficial owners.