10 risks that investors must take into account:
1) Business risks
NSDL, who started the activities such as the first securities storage in India in 1996, is a market infrastructure institution on the securities market in India. Apart from Depository Services, NSDL’s subsidiaries – NSDL Database Management Limited (NDML) and NDML) and NSDL Payments Bank Limited (NPBL) – offer a series of services, including database management, solutions for insurance repositioning, payment banking activities, paying banking banking activities, payment banking banking banking banking banking banking banking banking Banking Banking Banking Banking Banking Banking Banking Banking Banking Banking Banking Banking Extensive data platform for debt instruments. Hits in one of the aforementioned companies can influence the general income for the company.
2) Turnover concentration from deposition services
A significant part of NSDL’s income (more than 50%) comes from its storage services. Any decrease in transaction volumes, the growth of the demat account or the price pressure can negatively influence the financial data.
3) Competition from CDSL and others
NSDL is confronted with fierce competition from Central Depository Services (India) (CDSL) and the latter reported a higher number of DEMAT accounts in 2025 on 15.29 crore versus 3.94 Crore accounts from NSDL.
4) Legal risks
NSDL and its subsidiaries are governed by legal provisions of Sebi, RBI, IRDAI and UIDAI and changes in the regulations or failure of the company to comply with the regulations of the above supervisors would influence the companies.
5) Failure to implement growth strategies
The failure of the company to successfully implement its current and future strategic plans and its efforts to successfully expand the service offer and the market range can influence our turnover and growth.
6) Risks of cyber security and data breach
NSDL is a critical market infrastructure institution (MIIS) and is a potential target for cyber attacks. An infringement can lead to data loss, legal fines and the distrust of investors.
7) Dependence on technology -infrastructure
NSDL relies on stable and secure technical systems for operations. Every long -term outages or technological failure can disrupt services and cause market -wide problems.
8) Conflicts of interest
NSDL said in its RHP that investors cannot ensure that there will be no conflict of interest between its responsibilities such as a securities surcharge and the interests of its shareholders in the company. The shareholders include NSE and many top banks such as HDFC Bank, Idbi Bank, Canara Bank, among others.
NSDL also said that one of the directors, Sriram Krishnan, is director of the board of directors of India International Depository IFSC, who is in the same industry as NSDL. Any conflict of interest that can occur as a result can have a negative influence on its company, financial situation, activities of activities and cash flows.
Read also: NSDL IPO: Issue opens on July 30, this is what you need to know about GMP, issue data
9) Risks with third -party suppliers
The company uses the services of certain external suppliers for its activities. Any deficit or interruption of their services can have a negative influence on its activities and reputation. E.g. It depends on complex information technology networks and systems to operate our company.
10) Pending legal proceedings
There are outstanding legal proceedings in which our company, our directors, our subsidiaries and our group companies are involved. These procedures are awaiting different levels of arbitrans before different judicial authorities, from which further liability can arise.
The depositary has solved the price band on RS 760-800 per share, with a great deal of 18 shares, for a minimum investment of RS 14,400 for retail investors. The IPO is fully an offer for sale (OFS) of a maximum of 5.01 crore shares by existing shareholders, including Idbi Bank, NSE, Union Bank of India, SBI, HDFC Bank and Suuti. NSDL does not receive any proceeds from the offer.
((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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