The National Securities Depository (NSDL), which is the country’s central securities in Mumbai, unveiled its blockchain-based security and covenant monitoring platform.
NSDL launched the blockchain platform last week on Saturday during the 25th-Anniversary presentation, and it will be used to strengthen the Indian government’s ability to monitor corporate bonds, especially instilling discipline and transparency in the industry.
According to Madhabi Puri Buch, the blockchain’s ability to promote transparency is what motivated them to adopt the technology. However, he was quick to point out that despite its cost-effectiveness; the idea of anonymity is not welcome by the authorities.
New Blockchain to Run on Two Controlled Nodes, Indian Market Shrinks
The distributed ledger will be maintained by two nodes that are controlled by the Central Depository Services Limited (CDSL) and a SEBA division. In the future, Buch did not rule out adding more nodes to the network.
NDSL controls 89% of the Indian securities market, and the data that was previously stored in its databases will be encrypted, time-stamped, and moved to the decentralized ledger.
In the last week of April 2022, the Indian Ministry of Electronics and Information Technology gave a directive that all virtual private networks (VPN), crypto exchanges, and data centers have to store their clients’ data for up to five years.
Trading volume in the leading Indian crypto assets exchanges shot down by about 70% following the introduction of the new 30% crypto tax rule that took effect on 1st April 2022.
According to the rule, all crypto investors are required to pay a 30% tax on the profits they make from crypto-related transactions.
