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India’s National Securities Depository Limited (NSDL) debuts DLT platform

09 May 2022 : 12:24
2 min read
  • NSDL and SEBI launched a DLT-based platform on Saturday May 7, 2022
  • The platform in its current manifestation is not cost-effective as hinted by SEBI Chair
  • The DLAT-based platform focuses on security and covenant monitoring

National Securities Depository Limited, an Indian central securities depository based in Mumbai, and the Securities and Exchange Board of India (SEBI), the regulatory body for securities and commodity market in India, have confirmed the launch of a DLT or distributed ledger technology-based platform, as per a report from Inc42

NSDL brings DLT platform

NSDL has launched the DLT platform together with SEBI for security and covenant monitoring, as per reports. The goal of the DLT platform is to facilitate the monitoring of security and governance in the corporate bonds market and also bring discipline, transparency, and vigilance to the market. 

SEBI Chairperson Madhabi Puri Buch, in the presence of Union Finance Minister Nirmala Sitharaman, launched the DLT platform, where some key aspects of the platform created by NSDL were brought to light which mainly revolved around transparency and the real-time nature of the technology. 

“Today, we have noticed that in respect of market, securities, investment, and payments, people are increasingly placing their trust in distributed ledger technology,” said the SEBI Chairperson.

Key features

Transparency and the real-time nature of the NSDL built DLT platform will help users see all the data recorded on the public blockchain platform. The technology is also capable of infinite divisibility, which can break digital assets, currency, or any data into smaller fragments to in financial inclusion.

“If the cost-effectiveness arrives, then it will be one more attractive feature of the entire DLT technology,” said Buch hinting that in its current manifestation, the DLT platform is not cost-effective. Furthermore, the SEBI Chair also talked about the anonymity factor of the DLT technology:

“This (anonymity) is the single biggest differentiator between private DLT manifestations and what we commonly refer to as Central Bank Digital Currencies where it is not envisaged that this aspect of the technology would… be put to use as we don’t wish to have anonymity,” she said.

Indian plans to roll out a CBDC model focusing on two areas: wholesale account-based and retail, as previously reported by Cryptonary. 

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