NSDL has received the Reserve Bank of India (RBI) approval to hold an SGL-II account for government securities and it will play the role of holding accounts in dematerialised form of those investors who have kept away from the delivery-versus-payment system of RBI.

These investors which include trusts and provident funds apart from high networth individuals hold their government securities in paper form and NSDL will seek to be the depository for these investors.

The NSE clearing corporation will function as a depository participant of NSDL for government securities. The entire operation is expected to be kicked-off in a month or so. According to NSDL sources, the NSDL board has also approved the introduction of stock lending through the depository. NSDL has already developed a module for facilitating this activity.

The baord has also cleared a scheme by Sebi wherein, the company can directly dematerialise the shares of an investor after seeking his consent, when the shares are sent to it for transfer. Currently an investor sends the shares for transfer, these are returned to the investors after transfer and then he goes again and lodges the shares for transfer. This process has been cut short.