CDSL Crosses 10 Crore Demat Accounts, Stock Jumps 5%

Central Depository Services Limited (CDSL) reported a remarkable achievement, crossing the 10-crore mark in dematerialized (demat) accounts. The news triggered a more than 5% surge in the CDSL share price during early trade on November 23. CDSL, a leading depository service provider in India, achieved this milestone a day prior, marking a substantial growth since its inception in 1999. The company specializes in facilitating the holding and transacting of securities in electronic form, along with the settlement of trades on stock exchanges. It serves investors or beneficial owners (BOs) across the country through its extensive network of more than 580 Depository Participants (DPs) spanning over 20,000 locations.

Comparison with NSDL

CDSL's rival, the National Securities Depository Limited (NSDL), operates as the only other depository in India. As of October 31, CDSL had over 21,400 registered companies, while NSDL had approximately 42,999 companies with their securities in demat form.

In the fiscal year 2023, CDSL reported a revenue of ₹620.94 crore, with a net profit exceeding that of NSDL at ₹275.96 crore. surpassing NSDL in operational performance. However, NSDL maintained a higher demat custody value at ₹302.19 lakh crore compared to CDSL's ₹39.71 lakh crore.

Pandemic-Driven Surge in Demat Accounts

The COVID-19 pandemic witnessed a surge in retail equity investors, leading to a nearly threefold increase in the total number of demat accounts since March 2020, reaching the 10-crore mark. Over the past six months, CDSL's stock has witnessed an impressive gain of 74.13%, outperforming the benchmark Nifty, which recorded a 7.98%  return during the same period.

CDSL's Subsidiaries

CDSL's major shareholders include the BSE, Standard Chartered Bank, PPFAS Mutual Fund, LIC, and Canara Bank. The company operates subsidiaries such as CDSL Ventures, CDSL Insurance Repository, and CDSL Commodity Repository, each playing a crucial role in the financial ecosystem.

CDSL Ventures Limited (CVL) stands out as the first and largest KYC Registration Agency (KRA) in India, managing over 4.6 crore digitized KYC records. CDSL Insurance Repository Limited (CDSLIR) is authorized by IRDAI to act as an 'Insurance Repository,' while CDSL Commodity Repository Limited (CCRL) facilitates stakeholders, including farmers and manufacturers, in obtaining electronic warehouse receipts.

Final Words

CDSL's achievement of crossing the 10-crore demat accounts milestone reflects its robust market presence, supported by favorable financial performance and a surge in retail investor participation.