The Hindu Business Line : NSDL, CDSL in pact with US firm

Mumbai June 25 The Depository Trust & Clearing Corporation (DTCC), New York, has signed a Memorandum of Understanding with National Securities Depository Ltd (NSDL), Mumbai and Central Depository Services (India) Ltd to build a cooperative relationship.

Under the terms of the MoU, depositories NSDL and CDSL will establish a mechanism with DTCC, whereby senior management and staff of both sides could meet on a regular basis to increase mutual understanding and exchange market updates, improvement opportunities and information on business operating models.

"NSDL is a critical infrastructure organisation in one of the fastest growing areas of the world, and so we are very pleased to formalise these ties and work more closely with them," said Mr Donald F. Donahue, DTCC Chairman-elect and Chief Executive Officer. "CDSL is a major part of the securities infrastructure in the country," he added.

"This will give us a new structure to exchange ideas, share market insights and develop coordinated ways of working with each other in the new global environment and ultimately benefiting investors through a safe and reliable global securities infrastructure," said Mr Donahue.

Mr Vijay V. Raut, Managing Director and CEO, CDSL said, "Although DTCC and CDSL have different legislative frameworks and settlement systems; it would be beneficial for both depositories to share their experiences to reduce risks and to enhance the efficiency of systems."