No, Central Depository Services (India) Limited or CDSL is not a government company. It operates as a market infrastructure institution regulated by the Securities and Exchange Board of India, but is not owned or controlled by the government. Founded in the year 1999, CDSL was initially promoted by the Bombay Stock Exchange and banks like the State Bank of India. At present, the stakes in CDSL are held by BSE and other promoters, institutions like FIIs and DIIs, public shareholders and retail investors.
CDSL is a facilitator for holding securities in dematerialised form and an enabler for securities transactions. It is one of the only two depositories authorised by the Government of India to hold financial securities like shares, bonds, mutual funds and others.
Here is a quick overview of CDSL
| Details | Info |
| Founded | February 1999 |
| Founder | Bombay Stock Exchange |
| Headquarters | Mumbai, Maharashtra, India |
| CEO | Nehal Vora |
| Industry | Depository Services |
| Services | Dematerialisation of securities, Transfer/Clearing of securities, insurance repository, commodity repository, e- voting and more |
| Value of Securities | 84 lakh crore |
| Official Website | www.cdslindia.com |
Company History
CDSL commenced operations in February 1999 after receiving the certificate of commencement of business from the Securities and Exchange Board of India. In the year 2002, it commenced online inter-depository transfer of securities. By the year 2005, the number of active demat accounts with the company crossed the 10 lakh mark.
CDSL incorporated its wholly-owned subsidiary, CDSL Ventures Limited, in the year 2006. The company launched its SMS alert facility for transactions in the year 2007. In the year 2008, the number of active demat accounts crossed 50 lakh mark. CDSL incorporated another wholly-owned subsidiary, CDSL Insurance Repository Limited, in the year 2011.
By the year 2015, the number of active demat accounts with CDSL had swelled to 1 crore. In the year 2017, CDSL went public through an IPO and was listed on the National Stock Exchange. It became the first depository in the Asia-Pacific region to list on a stock exchange.
Current Status
CDSL is the largest depository in India in terms of number of demat accounts opened. The number of investor accounts is currently at 17,59,02,270, while the number of depository participants is 585. Total number of securities held by CDSL is 9,91,309 million or 99.13 crore, with a total value of 8,40,22,330 million or 84 lakh crore.
CDSL has expanded beyond basic demat services to include e-sign, e-voting, insurance repository, commodity repository, consolidated account statements, eKYC, online account openings and many other services.
Future Outlook
CDSL’s long-term prospects remain positive, driven by its dominant position in new demat account additions, expanding retail investor base and the ongoing dematerialisation trend. Moreover, CDSL is expected to benefit from increasing equity participation, mutual fund inflows and policies supporting the capital market.
