The National Securities Depository Ltd (NSDL) on Thursday settled a case pertaining to alleged violation of depository rules with markets regulator Sebi after paying Rs 3.12 crore towards settlement amount.

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This came after NSDL proposed to settle the case involving alleged violations of rules specified under the Sebi (Depositories and Participants) Regulations, 2018 "without admitting or denying the findings of facts" through a settlement order.

NSDL was accused of failing to address grievances from participants and beneficial owners within 30 days, as required by Regulation 7(g) and breaching clauses of the Code of Conduct under the same regulations, both before and after August 28, 2023.

"In view of the acceptance of the settlement terms and the receipt of settlement amount...By Sebi, the instant adjudication proceedings initiated against applicant vide show cause notice (SCN) dated February 8, 2024, is disposed of," the settlement order noted.

The Securities and Exchange Board of India (Sebi) received a settlement amount of Rs 3.12 crore from NSDL on October 14.In late September, the depository received Sebi's go-ahead to launch its initial public offering (IPO). The clearance from the markets regulator came more than a year after the company submitted its preliminary IPO to the regulator in July 2023.

The IPO is a complete offer for sale (OFS) of more than 5.72 crore equity shares by shareholders, including National Stock Exchange of India (NSE), State Bank of India (SBI), and HDFC Bank, as per the draft red herring prospectus (DRHP).

NSDL is a Sebi-registered market infrastructure institution offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, NSDL pioneered the dematerialisation of securities in India in November 1996.