Hello VPians myself Thejas . I am working in NSDL at BANGALORE… i have a suggestion since we at NSDL will be doing lot of activities for investor awareness programs i thought i will associate VPians for this investor programs… we can do a joint program to create an awareness for the investors on capital markets in india anywhere in karnataka n other regions too.Kindly drop in your feedbacks on this.
Can you please provide some details about activities which you generally conduct so that we can provide some inputs…
Hi Thejas, thanks for offer to conduct awareness program. I have previously attended couple of similar programs by CDSL and they are quiet informative for someone who does not have enough knowledge of the workings of the depositories, custodians, clearing & settlement process etc. Many especially older generations are still haunted by the scams.
I am always worried about unauthorized debit happening in my demat account by anyone who is in a position do so either at the DP, broker or NSDL itself. It will be good if you can share some information on what internal control mechanisms are in place at NSDL to prevent such activity and what demat holders can do to prevent such activity.
So far the only response I have received from NSDL that I should register my mobile and email with my DP so I will get SMS whenever there is an activity in my account. This is hardly a solution as I get notified only after shares are debited from my account and not before that. Also, the SMS from NSDL is received on the pay-in day (T+1). At that time, damage (in case of unauthorized activity) is already done. I get a similar message from CDSL but they send it on T day so I at least have a day before shares are actually debited from my account.
I hold NSDL account via DP. And I get so many calls from other Brokers for account opening. I get those mails / calls to buy rights issue forms, during Rights Issue seasons.
We conducts these iaps across country… we do with our DPs n they get thier clients n prospective clients to the programs n v slso get speakers from mutual fund houses n some institute who can speak about markets n economics n even from banks who can talk abt products of bank… we present on depository system n our products n services which we offer to investors through DPs
We NSDL are pioneers in depository system in india. Our custody value can match up to the gdp of major 11 countries in the world n all FIIs trsnsaction happens with NSDL system…so keeping this as a criteria we had built a strong infrastructure back then n till now v r safekeeping that… our servers are built to handle any situations n its vulnarable too n we also have a DRS site
About the transaction updates kindly ask your DP to update in depository sometimes they update in their own backoffice n trading terminal but not in the depository… i hope you would have been receiving CAS statements from NSDL every month wenever there’s a transaction which took place previous months…
And almost top DPs prefer our depository cos of the technology we have used into software of depository which makes them to use hassle free
For more info visit https://nsdl.co.in.
About our products , services n other variuos projects of national stature
Being in IT security for over 2 decades, I am too aware of all the the ways IT systems can be breached. What you have listed are called as safety measures not security measures. In IT parlance, safety is protections against natural and unintended attacks whereas security is protection against intended and well planned attacks. DRS sites, IT infrastructure etc are safety measures aimed at protecting from unintended and natural problems of hardware failure, power failure, network failure, floods, earthquakes etc. The real security threat is from humans.
Being the custodians of assets worth more than GDP of 11 nations makes you vulnerable to attacks from hackers, trojans and thieves who come through the front door not the back door. They don’t break the physical walls of your data centers but the IT firewalls around your servers sometimes as easily as guessing the passwords.
I am interested in knowing what kind of internal control systems are in place to prevent a fraudulent transactions in which securities are transferred from one account to another, sold on the exchange and funds siphoned off from the banking system. How would NSDL trace the securities if securities go missing from my (or anyone else’s) account.
Your response confirms my apprehensions. NSDL seems to be resting on its laurels. It started as a monopoly so its not too difficult to be the largest. Even today it is part of a duopoly. With thousands of transactions (perhaps millions) happening daily, some kind of AI or cognitive technologies are needed to build a 21st century surveillance systems. Just a few years ago, depositories weren’t even able to notice that hundreds are accounts are opened with identical address to corner IPO allotments. They were too busy telling the world how many accounts are opened and how many assets are under their custody.
As investors, all we can do is to spread our assets across two depositories and multiple DPs.
I have found CDSL better compared to NSDL. Appreciate the way you have replied to NSDL’s smug response. only if you are paranoid about your security you will stay ahead in this game.
@thejasdk You response does not elicit any comfort. I have the following points to make
Brokers which also double-up as DP have forced investors to open multiple demat account. A single demat account does not connect with multiple trading account.
Depositories still encourage paper based DIS. Speed-e/Easiest are as unpopular as they can be. Also process of setting-up Speed-e is so cumbersome that I bet most of investors will be discouraged.
The process set-up by Depositories envisages giving power of attorney to broker/DP which always leaves room open for fraud. Just because it has not happened till date does not mean it cannot happen.
I have the below suggestion, which I am sure you will not work on but just for the sake of it
I have bought coffeeday shares and sold at T+2 day. Like this i bought many times with other stocks.
But my broker sharekhan, sent message and told that its short and buy. But i not understand as i new, finally they did some auction and kept coffeday share in my account. thats made me some loss. I called sharekhan manager and customer care, there was a shortage of stocks, you have to sell after it delivered only.
is this right ? so, trying to understand and get more awareness on this. Thanks advance.