Beginning
Central Depository Services (India) Ltd or CDSL is the first listed securities depository based in Mumbai. It started business in Feb 1999.
It was initially promoted by BSE (Bombay Stock Exchange) which thereafter divested its stake to leading banks.
What does CDSL do?
The main function of CDSL is to facilitate holding of dematerialised securities, and enable securities transactions to be processed by book entry.
CDSL facilitates holding and transaction in securities in the electronic form and facilitates settlement of trades on stock exchanges.
These securities include
- Equities
- Debentures
- Bonds
- Exchange Traded Funds (ETFs)
- Units of Mutual Funds
- Units of Alternate Investment Funds
- Certificates of deposit
- Commercial Papers
- Govt. Securities
- Treasury Bills
Listing
CDSL was listed on 30th June 2017 on the National Stock Exchange through an IPO. It became the first and only depository to get listed in the Asia-Pacific region and second in the World.
Current Business
As a Market Infrastructure Institution, CDSL provides services to all Market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors.
It currently services
- 2.41 crore (24.1 million) Investor accounts and
- 597 depository participants
Business Strategy
CDSL has gained marketshare consistently - from its only competitor NSDL (national Securities Depository Limited).
Its marketshare is 52% and it is the market leader - with a focus on retail/individual segment.
Recently SEBI - has allowed for EKYC (electronic know your customer) which has helped in increase in number of retail accounts - as account opening becomes easier. As more number of people participate in the financial markets in India - more depository accounts are getting opened.
This has helped CDSL in its business - so good growth in business and gain in market share.
CDSL stock price (past 1 year)
(Disclaimer : This blog is for educational purposes and not to solicit any business or offer any kind of advise. Stock market investing is a with risk investing including risk on capital invested. Please take an informed decision)
