The Depository Trust & Clearing Corporation (DTCC), the world’s largest depository based in New York, has signed two separate agreements with the National Securities Depository (NSDL) and the Central Depository Services (CDSL), the country’s two leading depositories, for information sharing and to exchange clearing and settlement data.
DTCC provides custody and asset servicing for 2.8 million security issues from the United States and 100 other countries and territories valued at $36 trillion. The pacts also gains credence in view of the recent government regulations allowing foreign players to pick up to 26 per cent in stock market infrastructure companies such as domestic depositories. The financial sector, including stock exchanges and brokerages, are attracting huge foreign interest for strategic investment. Industry experts feel global players are already exploring opportunities to invest in depositories.
Following the agreement, the executives of the corresponding depositories will meet on regular basis to increase mutual understanding, improve opportunities and information on business operating models, besides exchanging market updates.
“We believe that forming closer ties with DTCC will work towards the prosperity of our respective financial markets and build understanding and cooperation to bring benefits to our customers and markets,” C Bhave, CMD, NSDL, said.
“The MOU with DTCC is an extension of the good relations that CDSL shares with them. I see it as an initial formal handshake, the beginning of a long and mutually beneficial business relationship,” Vijay Raut, CDSL MD said.