The National Securities Depository Limited (NSDL) on December 11, 2025, issued a circular regarding the enhancement for enabling Application Programming Interface to facilitate Value Free Transfer (VFT) of Government Securities (G-Secs).
The following are the key features of the system enhancements:
• Introduction of New Transaction Type (details given below) for enabling VFT of G-Secs from NSDL Demat account to RDG and vice-versa as off-market transfers.
• Transfer requests/instructions between NSDL depository system and RDG and vice versa and between depositories will be processed on all working days, including working Saturdays till the deadline prescribed for the working days, except on bank holidays declared in Maharashtra under the Negotiable Instrument Act, 1881.
• Procedure to be followed by Participant for Own Account Transfer – NSDL to RDG:
o Off-market transfer to RDG Account
Demat holders must submit an Inter-Depository Delivery Instruction Slip using reason code TOA (Transfer to Own Account).
RDG account (12 characters) to be split equally into DP ID (6) and Client ID (6).
NSDL eDPM allows transfers between Resident/NRI NSDL accounts and RDG accounts.
o System validations (for verify/release)
PAN and holder sequence must match in source and target accounts.
System checks for any unpaid coupon payment in the source account.
o Post-validation
If validations pass → transfer is processed.
If validations fail → instruction is rejected; Participant must inform the client.
o Deadlines for accepting off-market transfer requests
Monday–Friday: till 4:30 PM
Working Saturday: till 1:00 PM
Process details are provided in the Annexure.
o Own Account Transfer – Between Depositories
Demat holders may request G-Sec off-market transfers as per existing process.
System validates PAN sequence and unpaid coupon payments.
If validation fails → request rejected; client to be informed.
o SPEED-e Users
SPEED-e (password/e-token users) may also initiate off-market transfer requests for Government Securities for their own account.
The aforesaid system enhancements in NSDL Depository system viz, e-DPM, NSDL Local DPM system will be implemented with effect from EOD of December 12, 2025.
[Circular No.: NSDL/POLICY/2025/0162]
