Sebi has prescribed conditions for allowing National Securities Depository Ltd (NSDL) to carry out certain non-core activities of a central record-keeping agency (CRA) under the new pension scheme. At its board meeting on Wednesday the market watchdog held the view that activities such as CRA should not erode the network required for carrying on NSDL’s depository activities in securities. Sebi prescribed the hiving off non-core activities of NSDL into a separate business unit without any financial and legal links with the parent company within three years.
The market watch dog also prescribed board and sponsors’ approval for carrying on other activities, additional insurance cover for risks if any emerging out of other actvities.
NSDL, whose core activity is to maintain database for the transactions taking place in the securities market, had recently applied to act as a central CRA under the new pension scheme.