[2] It was established based on a suggestion by a national institution responsible for the economic development of India.

[3][4][5][6] NSDL provides services to investors, stock brokers, custodians and issuer companies through its nationwide network of Depository Participants and digital platforms.

Although India had a vibrant capital market which was more than a century old, the paper-based settlement of trades caused substantial problems such as bad delivery and delayed transfer of title.

Protean eGovernance Technologies (earlier known as NSDL e-Governance Infrastructure Limited) was a former subsidiary.

[5] It works on Digital Public Infrastructure and Open Source software as well as offers services related to issuance of PAN cards and also acts as central record-keeping agency for National Pension System (NPS).

[citation needed] It contributes to majority of the settlement in the Indian securities markets and has more than 89% share in the total value of assets held in demat form in India.