The Central Depository Services Limited (CDSL) proudly declared a significant milestone on November 22. With over 10 crore demat accounts registered, CDSL stands out as the first listed depository to achieve this remarkable feat.
CDSL Demat Account Services
CDSL stands as one of India’s two premier depositories, providing investors with efficient demat account services. A demat account securely holds securities in electronic form, eliminating the need for physical certificates. Linked to the Bombay Stock Exchange (BSE), CDSL demat accounts can be conveniently opened through any of its 599 registered Depository Participants (DPs).
- Witnessing remarkable growth, especially during the COVID-19 pandemic, CDSL achieved a significant milestone by becoming the first depository to register over 9 crore demat accounts in July 2023.
- As of September 30, 2023, the demat accounts surpassed 9.62 crores, with a staggering addition of approximately 80 lakh demat accounts in Q2 FY23-24 alone.
- To emphasise the rapid growth, it took CDSL 16 years to reach 1 crore, 5 years to reach 2 crores, and less than 2 years to reach 3 crores.
CDSL: Leading the Demat Revolution
CDSL holds the top position in the country for active demat accounts, offering investors the opportunity to secure their securities in electronic form. Currently, CDSL manages and services a staggering 10 crore demat accounts for Investors or Beneficial Owners (BOs) spread across the nation.
CDSL Revenue Surge
Reporting record-breaking figures for Q2 FY23-24, the company witnessed revenue reaching an impressive Rs 230 crore and profits surging to Rs 109 crore, marking a remarkable 35 percent increase. The Q1 FY23-24 results were equally impressive, with revenue at Rs 201 crore and profits at Rs 85 crore, reflecting a notable 28 percent increase.CDSL’s primary revenue sources include transaction charges, annual issuer charges, annual maintenance charges, and various other service charges.
A Closer Look at CDSL’s Impact
Serviced by over 580 Depository Participants (DPs) across 20,000 locations, CDSL aims to provide timely, dependable, and secure depository services at an affordable cost. As the sole listed depository, CDSL has set a standard for reliable financial services in the market.
CDSL vs. NSDL: A Comparative Insight
At the competitive level, CDSL and National Securities Depository Limited (NSDL) stand as the two primary depositories in India. While NSDL competes on various parameters, CDSL’s operational performance in FY23 outshone its competitor, reflected in its revenue of ₹620.94 crore and a net profit of ₹275.96 crore.
Comparison: NSDL vs. CDSL
| NSDL | CDSL | |
| Established | 1996 | 1999 |
| Promoted by | IDBI Bank, UTI, NSE | BSE, banks, financial institutions |
| Association | Primarily with NSE | Primarily with BSE |
| Demat Account Number | Starts with “IN” + 14 digits | 16 digits |
Financial Performance Overview
Despite NSDL having a higher number of unlisted companies, CDSL’s operational excellence is evident in its revenue and net profit exceeding that of NSDL. In FY23, CDSL’s demat custody value reached ₹39.71 lakh crore, reinforcing its strong position in the market.
Market Reaction
On the trading front, CDSL’s shares settled at ₹1,717.95 apiece on the NSE, marking a 0.41% decrease on Wednesday.
Some Commonly Asked Questions
No, CDSL is not a government company. It is a private company registered by the government to provide depository services. Originally promoted by the Bombay Stock Exchange (BSE) and other financial institutions.
You can identify your account type by checking your demat account number. A 16-digit number indicates a CDSL account, while an account starting with “IN” followed by 14 digits signifies an NSDL account.
NSDL is larger than CDSL in terms of both the number of demat accounts and the value of securities held.
CDSL charges vary based on the chosen Depository Participant (DP). Common fees include account opening, annual maintenance, transaction, dematerialisation, rematerialisation, pledge, and failed instruction fees.
Source- livemint.com, cdslindia.com
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