An NSDL spokesperson said the disruption had been resolved and settlement activity was returning to normal.
National Securities Depository Ltd. (NSDL) expects all delayed equity trades to be settled by Thursday night after a technical network disruption affected inter-depository settlement flows earlier this week, people aware of the matter said.
The issue was caused by instability in NSDL’s network systems, which temporarily disrupted connectivity with Central Depository Services (India) Ltd. (CDSL), a key link used for transferring securities across depository platforms, the people said. Inter-depository functions are a routine but critical part of India’s post-trade market infrastructure, used when securities move across different depository platforms.
An NSDL spokesperson said the disruption had been resolved and settlement activity was returning to normal. “It was a network issue. The network became unstable and the connectivity with CDSL was disrupted. We have resolved it and expect complete normalcy by the end of tonight, with all pending trades being settled,” the spokesperson said.
NSDL, the country’s second-largest depository, has also initiated a review of the incident to strengthen network resilience and prevent a recurrence. The depository has begun a deeper evaluation of its network resilience and redundancy frameworks, including an independent assessment. “We have already started a deep dive into what happened, what we can learn from it, and how to further strengthen our systems,” the person added.
Typically, shares purchased are credited by around 10:30 am on the following trading day, while securities sold are debited by about 3:30 pm. Due to the disruption, shares bought in the cash market on Tuesday and Wednesday were not credited to some investors’ demat accounts within the usual settlement timelines, market participants said.
Market participants said that even brief settlement disruptions can create operational pressure in high-volume trading environments. This incident adds to the periodic outages faced by exchanges and market intermediaries over the years that have affected trading or post-trade processes, prompting regulators to push for stronger disaster recovery and business continuity frameworks.
Published on February 5, 2026