09:05:00 AM IST, 06 Aug 2025
NSDL Share Price Live Updates: Risk Factors
Demand Risk: A significant shift in investor preferences away from securities investing and trading towards alternative avenues could reduce demand for NSDL’s services, potentially impacting its business performance.
Product Evolution Risk: NSDL’s growth depends on its ability to innovate and introduce technology-driven products and services that align with rapidly evolving industry standards and investor expectations. Failure to do so may adversely affect its competitive position.
Market Risk: Transaction fees accounted for 25.0%, 24.3%, and 29.9% of NSDL’s revenue in FY23, FY24, and FY25 respectively. A slowdown in trading activity due to geopolitical tensions or adverse economic conditions could negatively impact this revenue stream.
IT Risk: NSDL relies on complex IT systems to run its operations. Any major disruption—whether from technical failures, cyberattacks, or security breaches—could impair business continuity and may lead to financial penalties from SEBI.
Regulatory Risk: Operating in a highly regulated environment, NSDL must comply with stringent SEBI guidelines. Non-compliance could lead to legal actions, penalties, or regulatory sanctions, posing a risk to its reputation and operations.