DTCC (US Depository) and NSDL sign Information Sharing and Collaboration Pact
Mumbai and New York, June 25, 2007 – The Depository Trust & Clearing Corporation (DTCC) in New York has signed a Memorandum of Understanding (MOU) with National Securities Depository Ltd. (NSDL) in Mumbai, India, designed to forge closer ties between the two organizations.
Under the terms of the MOU, NSDL and DTCC will establish a mechanism 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.
The MOU also noted that “the parties anticipate developing a closer working relationship in the future and wish to maintain channels of communication for exchange of information and to promote visits for reasons of friendship and other business purposes.”
“NSDL is a critical infrastructure organization in one of the fastest growing areas of the world, and so we are very pleased to formalize these ties and work more closely with them,” said Donald F. Donahue, DTCC Chairman-elect and Chief Executive Officer. “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.”
“We believe that forging closer ties with DTCC will work towards the prosperity of our respective financial markets, and build understanding and cooperation between our organizations,” said NSDL Chairman & Managing Director C. B. Bhave. “The mutual exchange of information on our business operating models and service offerings will bring enormous benefits to our customers and markets.”
The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC’s depository provides custody and asset servicing for 2.8 million securities issues from the United States and 100 other countries and territories, valued at $36 trillion. Last year, DTCC settled more than $1.5 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.
National Securities Depository Ltd. (NSDL) is the first and the largest depository in India. Promoted by institutions of national stature viz.; IDBI, UTI and NSE responsible for economic development of the country, NSDL has established a national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital markets. Using innovative and flexible technology systems, NSDL works to support the investors, brokers, clearing corporations and stock exchanges in the Indian capital market. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimise risk and reduce costs. NSDL plays central role in developing products and services that will continue to nurture the growing needs of the financial markets. NSDL services more than 7.8 million investors through its Participants from over 5,700 locations across more than 700 cities/towns across India. NSDL holds securities valued at US$863 billion. NSDL has also set-up and manages nationwide Tax Information Network on behalf of the Government of India. For more information about NSDL, visit www.nsdl.co.in.
