India, May 31 -- India's capital market infrastructure is entering a more interesting phase. After years of strong retail participation, rising demat accounts, large IPO activity and expanding domestic savings, the pace of new investor additions has started cooling. This slowdown matters for a company like National Securities Depository Limited, better known as NSDL, because its business is deeply connected to the growth of India's securities market.

NSDL is India's first and largest depository, launched in 1996, and it has played a central role in moving India away from physical share certificates to electronic holding of securities. In simple words, NSDL works like a digital locker for shares, bonds, mutual fund units and other securit...