NSDL has agreed to a settlement with SEBI for non-compliances identified during SEBI’s inspection of NSDL in the financial year 2023-24. The amount of the settlement is ₹ 15.57 crore (i.e., ₹ 15,57,60,000). SEBI accepted NSDL’s settlement application under the SEBI (Settlement Proceedings) Regulations, 2018, and approved the terms on 17 October 2025. NSDL must remit the agreed amount within 30 calendar days of acceptance.
According to NSDL’s disclosure, while non-compliances were identified during inspection, the company expects that the settlement will have no material impact on its financial or operational business activities.
Background & Context
NSDL is India’s principal depository for securities, handling the electronic holding and transfer of securities for investors and market participants. As a market infrastructure institution, NSDL falls under SEBI’s regulatory oversight. SEBI periodically conducts inspections of such entities to verify compliance with applicable rules, regulations and operating frameworks.
In the inspection for FY 2023-24, SEBI observed certain non-compliances at NSDL. Rather than undergo full adjudication or litigation, NSDL submitted a settlement application under the settlement regulations. After review, SEBI accepted the recommended terms via its High-Powered Advisory Committee (HPAC).
Details of the Settlement
- Settlement amount agreed: ₹ 15.57 crore.
- Acceptance date: 17 October 2025.
- Payment deadline: Within 30 calendar days from acceptance.
- Additional terms: NSDL is required to comply with any non-monetary conditions or directions that may form part of the settlement.
- Impact: NSDL has stated that there will be no material effect on its business operations, finances or other activities as a result of the settlement.
What Is Not Publicly Disclosed
While the key amounts and dates have been publicly disclosed, the publicly available information does not provide:
- A detailed breakdown of the exact nature of the non-compliances found during SEBI’s inspection (for example, which specific rules or regulations were breached, how many instances, severity).
- The full text of SEBI’s settlement order in this specific matter (as of now publicly accessible).
- Detailed publicly-disclosed commitments or correction action plans by NSDL beyond the monetary payment (if any non-monetary commitments exist).
Implications (Summary Points): For NSDL, SEBI / Regulatory Landscape, Investors, Market Participants & Stakeholders
- Settlement helps avoid long legal or regulatory proceedings.
- Prevents potential higher penalties and reputational damage.
- ₹15.57 crore payment is not expected to materially impact operations.
- Indicates regulatory and operational risks that need stronger compliance.
- NSDL likely to enhance internal controls and governance frameworks.
For SEBI / Regulatory Landscape
- Reflects SEBI’s strict and active oversight of market infrastructure entities.
- Shows effective use of the 2018 Settlement Regulations for timely resolution.
- Reinforces that compliance lapses can result in significant financial penalties.
- Encourages other entities to maintain transparency and procedural integrity.
For Investors, Market Participants & Stakeholders
- Reminder of ongoing regulatory scrutiny in the securities ecosystem.
- Highlights importance of governance, compliance, and risk management.
- Stakeholders should track future inspection outcomes and corrective measures.
- Encourages all market-linked institutions to review and improve audit readiness.
Summary
In essence: NSDL has agreed to settle with SEBI for ₹ 15.57 crore in respect of inspection non-compliances for FY 2023-24. SEBI accepted the settlement terms on 17 October 2025, and NSDL will pay within the prescribed period. While NSDL expects no material operational or financial impact, the incident draws attention to regulatory oversight of market infrastructure and the importance for such entities to maintain robust compliance, governance and internal control frameworks.
FAQs
1. What is the NSDL–SEBI settlement about?
Ans: The settlement concerns certain inspection-related non-compliances found by SEBI during its review of NSDL’s operations for the financial year 2023-24. Instead of going through a full adjudication process, NSDL chose to settle the matter under SEBI’s settlement regulations.
2. How much is the settlement amount?
Ans: The total settlement amount is ₹ 15.57 crore (₹ 15,57,60,000). This payment resolves the non-compliance observations identified by SEBI.
3. When did SEBI approve the settlement?
Ans: SEBI formally accepted NSDL’s settlement proposal on 17 October 2025, following the recommendation of its High-Powered Advisory Committee (HPAC).
4. What is the deadline for payment?
Ans: As per SEBI’s approval, NSDL must pay the settlement amount within 30 calendar days from the date of acceptance of the terms.
5. What are “inspection non-compliances”?
Ans: These refer to deviations or lapses found during SEBI’s regulatory inspection—such as procedural errors, reporting delays, or failure to meet specific operational standards or documentation norms. The exact details of the breaches have not been publicly disclosed.
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