Recently, I noticed one thing very interesting happening in CDSl. These days they are doing concall more often.
Recordings as well as Transcripts of each and every concall are being furnished. Thats very rare keeping in mind the current legislation regarding furnishing of info to the exchanges.
Seems too good in bull market, or they are trying to influence the share price looking at their share price run up. Earlier they were not doing so.
Views invited.
Its usual for companies to meet Investment analysts. By uploading the transcripts, they are just following the respective rules. No point reading too much into this.
Is NSDL listing going to create competition to CDSL?
NSDL has always been competitor. Depository business in India has duopoly. The market share of CDSL has increased largely after the covid pandemic.
Disclaimer: Investment @ 260, could not average due to rally.
Meeting Analyst/Investor needs to be disclosed to regulators. As of now it is not mandatory to give the transcript of the meeting. This is made mandatory from mid of 2022
Post amendment in Listing Regulations
On May 05, 2021, SEBI amended the Listing Regulations which inter alia, covered analyst meet. Pursuant to the said amendment, the companies are required to include enhanced disclosure requirements with respect to analyst/ investors meets so as to avoid selective disclosure and information asymmetry and to ensure market integrity and to safeguard the interest of investors. The said amendments are voluntary for FY 2021-22, and will become mandatory from FY 2022-23.
As we can see from below image it is mandatory that transcript also needs to be uploaded.
This will be really good for learning, for example when people like Mohnish meets IEX/Rain, or when Enam holdings does meet with new upcoming company we get to know what kind of questions they ask and we might get peek into their thinking.
Also in earnings call usually higher management is present. In 1-o-1 or analyst meet it is possible many others like business development people are present. Also it is interesting to see in these meetings it is possible to learn some insight into company’s product mix split and their revenue also. Generally in earnings call or AGMs such questions are not directly answered.
Looks like CDSL is ahead in regulation and doing it voluntarily.
Edited for more info and spell checks
What I read about the CDLS and NSDL is, NSDL needs its hardware to be at premises. So probably they have their servers at NSE(or designated place). CDSL is more like cloud provider their hardware is independent of the location. They are primary providers at BSE.
More over the customer can choose which depositories. Zerodha by default has CDSL, their website does give procedure to change the depositories. So we really don’t know as of now who really benefits. Tried to get mapping data of broker against its default depository could not find any. If we get such data including new age apps like Groww etc… we might have some quantifiable data.
Previous info is not correct.
Girish Amesara: “No, generally what happens is that whenever we do a communication whether on telephonic communication or email communication, we have to intimate the stock exchange. That is
internal rule that we have decided, because from 1st April ‘22, all investor calls are compulsory
to be uploaded on NSE website, recording and transcript of it is compulsory. So, we have
implemented this from this year itself.”
Above is an extract as mentioned by their CFO in a Con Call with Elara Capital.
Happy New Year folks!
Update:
The number of active accounts has now exceeded 5.55 Crore. Account addition rate per month is at about 30 lakhs this quarter as against 20 lakh per month during last quarter(ended September 2021) - note that at end of September the active accounts were at 4.64 Crore.
Source: https://www.cdslindia.com/
Noted some interesting trend in Beneficial Owner account(BO) addition Vs Securities addition - see the chart below. Currently the BO’s are getting added at a pace significantly above the Securities addition - i believe this trend will likely reverse in the medium term. The number of listed and unlisted companies which will get added to CDSL over the next few years will be interesting to note - per my understanding, NSDL has about 5 times the number of securities(at about 2,65,163 Crore) as against what is held by CDSL(at about 52,367 Crore) - this number is likely to converge as more companies get listed and increasing pace of unlisted companies opting for two depositories.
AJ
Disclosure: Remain invested and positively biased.
CDSL’s subsidiary- CDSL Ventures Limited receives approval from SEBI to
set up Accreditation Agency
CDSL is pleased to announce that its wholly owned subsidiary - CDSL Ventures Limited (“CVL”), has received SEBI’s approval to set up an Accreditation Agency for a period of 3 years with effect from February 01, 2022 for accreditation of eligible Investors.
SEBI had earlier in August-2021, introduced a concept of ‘Accredited Investors’ (AIs) in the Indian Securities market. Under the aforesaid framework covering Alternative Investment Funds, Portfolio Managers and Investment Advisors, AIs may avail flexibility in minimum investment amount (“Lower ticket size”) or concessions from specific regulatory requirements applicable to investment products, subject to conditions applicable for specific products or services. Persons desirous of being reckoned as AIs shall approach an Accreditation Agency for accreditation.
@Tushar_Kansal Still you statement does not show DP charges for selling mutual funds. Just read complete line, I said selling MFs held in Demat attract DP charges, but that has been taken up by zerodha. What your statement shows is DP charges for Equity
Yesterday, I added “Stock Nominee” in Groww and Zerodha. (Not to be confused with Mutual fund nominee - Its a new feature offered by all brokers to add nominee for stocks as well.
As per Zerodha CEO, Nithin Kamath over 80,000 crore Rupees are not claimed as there was no nominee feature present earlier.
Source - Zerodha's Nithin Kamath Has A Solution For ₹80,000 Crore Unclaimed Money | Mint)
So while adding I noticed this.
Despite the fact that most of the new age companies DP is CDSL(even Zerodha, Groww, Upstox etc), the e-sign verification was redirected to NSDL page.
Currently NSDL charges fee as per the below image and UIDAI takes it own cut here.
Source : https://www.egov-nsdl.co.in/e-sign.html
As per below image dated on September 8, 2021 - CDSL announced that, they received this e-sign facility but there was no further updates on whether its implemented or not. I didn’t found any results on my internet search.
The scope of this feature, customer acquisition and earning visibility must be checked with the management on the next concall.
Additional Titbit : NSDL has a new name → Protean eGov Technologies (formerly known as NSDL E-Governance Infrastructure)
The divestment in CDSL IFSC Ltd news is out now. The sale is being made to India International Bullion Holding IFSC Limited (IIBHIL) in two tranches.
The International Bullion Exchange shall be the “Gateway for Bullion Imports into India”, wherein all the bullion imports for domestic consumption shall be channelized through the exchange. The exchange ecosystem is expected to bring all the market participants at a common transparent platform for bullion trading and provide an efficient price discovery, assurance in the quality of gold, enable greater integration with other segments of financial markets and help establish India’s position as a dominant trading hub in the World.
Pursuant to Memorandum of Understanding between National Stock Exchange of India Limited (NSE), the Multi Commodity Exchange of India Limited (MCX), India INX International Exchange (IFSC) Limited (INDIA INX), National Securities Depository Limited (NSDL), Central Depository Services (India) Limited (CDSL), the holding company India International Bullion Holding IFSC Ltd. (IIBH) was created for setting up and operationalising International Bullion Exchange, Bullion Clearing Corporation and Bullion Depository in IFSC, GIFT City.
What impact will this have on CDSL…
Views invited.
Earlier NSE with their NSDL arm was also trying to compete in the bullion depository along with other players. Now they have come to an understanding on forming a single depository and dividing this monopoly among the major capital market players.
I tried to read the drhp. It maybe a separate part of NSDL dealing with e-governance projects like Pan Card, NPS etc. The metrics were not good inspite of oligopoly. This maybe due to the fact that the main and only customer is government.
Income: Y-o-Y - 58% Q-o-Q - (1)%
Net Profit: Y-o-Y - 55% Q-o-Q - (3)%
CDSL_05022022152247_pressreleasetoNSE.pdf (240.0 KB)
Seems most of the growth is behind us.
Disc: Invested from lower levels.
With the upcoming LIC IPO , 29 Cr LIC holders and 7.5 CR odd demat accounts in india. There is decent probability of a good number of new demat accounts being opened from newcomers and policyholders just to be part of Lic ipo.
There is also 10% preferential allotment reserved for existing lic holders in this IPO.
CDSL might see a good earnings growth for coming few quarters.
Frankly it’s not news to anyone…everyone knew about LIC IPO and reservation to policy holders since 6 months. I beleive the LIC news is already factored in and new dmat accounts will not be as aggressive as before due to several macro factors. Eventually growth will be there but not like before imo
Disc - invested
I think what you say is right for next quarter onwards. This quarter, I expect to see big one time boost to the Dmat account additions, knowing how people rush to do things at the last minute ( similar to filing IT returns on last day). If LIC opens its IPO in March , then this quarter should be best quarter for CDSL