NSDL board approves Rs 50 lakhs transfer to fund for glitch
National Securities Depository Limited’s board approved transferring Rs 50 lakhs plus interest to its Investor Protection Fund to address a technical glitch from July 2023. The action complies with a SEBI circular regarding financial disincentives for Market Infrastructure Institutions. The company reported no material impact on its financial or operational activities from this payment.

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National Securities Depository Limited’s board has approved a proposal to transfer Rs 50 lakhs, along with applicable interest, to its Investor Protection Fund. This decision follows a technical glitch that occurred on July 26, 2023. The payment is being made in accordance with SEBI circular no. SEBI/HO/MRD1/DTCS/CIR/P/2021/590 dated July 05, 2021, which outlines provisions for financial disincentives by Market Infrastructure Institutions.
The board approved the transfer via a circular resolution dated June 24, 2026. The disclosure was submitted to the exchange on June 25, 2026. The company confirmed that the proposed payment will not have a material impact on its financial, operational, or other activities.
Regulatory Details
The transfer is a financial disincentive imposed due to the specific technical disruption. The relevant details regarding the SEBI regulations and the nature of the action taken are summarized below.
| Particular | Information |
|---|---|
| Name of the authority | Securities and Exchange Board of India (SEBI) |
| Nature of action | Transfer of Rs 50 lakhs plus interest to Investor Protection Fund due to technical glitch on July 26, 2023 |
| Relevant SEBI Circular | SEBI/HO/MRD1/DTCS/CIR/P/2021/590 dated July 05, 2021 |
| Impact on operations | No material impact on financial, operation or other activities |
The information was disclosed by Alen Ferns, Company Secretary & Compliance Officer of National Securities Depository Limited.
Historical Stock Returns for National Securities Depository (NSDL)
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.01% | -4.85% | +6.29% | -19.55% | -8.84% | -8.84% |
What specific measures is NSDL implementing to prevent similar technical glitches following this penalty?
Will this financial disincentive prompt SEBI to tighten regulations for other Market Infrastructure Institutions?
How might this penalty influence investor confidence in NSDL's operational resilience?































