It will be interesting to see when the LIC IPO price band comes out.
So far the largest IPOs have been a big flop post listing - Paytm (2021) and RPL (2008).
LIC IPO will be the largest when it hits the mkt.
IMO it looks like a ploy by govt to get the retail participation subscribe more times that it won’t look bad.
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‘CDSL becomes the first depository to open 6 crore active Demat accounts.’
NSE IFSC will commence trading of US stocks as ADR.
‘Out of receipts of 50 stocks that are permitted to trade, eight will be available for trading from 3 March. The stocks are: Alphabet Inc, Amazon Inc, Tesla Inc, Meta Platforms, Microsoft corporation, Netflix, Apple, and Walmart.’
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Is it only for retail investors or applicable to DIIs too?
Does this mean we can use existing demat /trading accounts to buy fractional shares of NASDAQ listed 50 companies?
Finally will it end the high PE rating of Indian companies due to large amount of money chasing small number of quality companies?
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No, new demat account with brokers dealing in IFSC Gift City will have to be opened. If the existing brokers signup with there, then their clients can use the services.
Anyways, separate money will have to be deposited for trading under the Liberalized Remittance Scheme (LRS), the upper limit of remittance is $2,50,000 per financial year.
The taxation of profits is different for this.
It would take time for things to get clear.
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Does it means CDSL Demat holders will get accesss to IFSC listed international stocks ? Any clarity on this? I could see news of trading starting today for retail investors, but I can’t a single broker who is giving this option.
https://www.nseifsc.com/content/usstocks/Member_Directory.pdf
These brokers have registered with NSE IFSC till now. A demat account has to be opened with them for trading.
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I think people are confusing these with normal equity shares being traded. In this, the broker will have to first buy US stocks in their account and then sell them as fractional share receipts to investors. You won’t get the shares in your account, only the receipts. In US the shares stays in brokers account only.
The existing brokers will most probably register in NSE IFSC and buy shares if the demand is high. They will have to update their software for this. All this process will take time. Check with your broker regarding this.
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Also how would the LRS compliance be done?
Residents can invest upto usd 250000 in foreign stocks.
Check this site for doubts regarding LRS scheme.
https://m.rbi.org.in/scripts/FAQView.aspx?Id=115
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NSE IFSC benifits CDSL ?
Like NSE IFSC scripts are stored in their own demat account or its stored in CDSL/NDSL demat account?
Does CDSL earns through NSE IFSC transactions ?
Kindly give some clarity on this?
‘The NSE IFSC Receipts Custodian has appointed Deutsche Bank AG, New York as the U.S. Custodian who will hold the Underlying Shares at the instructions of the NSE IFSC Receipts Custodian. The NSE IFSC Receipts Custodian has appointed CDSL IFSC Limited as the Registrar. The Registrar will be responsible for maintaining the the register of Holders in respect of each Series of NSE IFSC Receipts and will provide other services related to the NSE IFSC Receipts.’
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CDSL Vs NSDL
Wrt New investors, The overall pie has increased since Fy20. Almost 3.5times from 2020 numbers. Possibly due to number of IPOs - Easy KYC and onboarding to Broker platforms - Lower interest regime making entry to markets the only option.
Would be good to see if any new asset class gets covered under CDSL NSDL like cryptos, betting exchanges etc
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Update as at 31 March 2022:
The number of active accounts is nearly 6.30 Crore as against 3.34 Crore as at 31 March 2021. Active account addition rate per month has moderated to about 25 lakh per month as against 30 lakhs we witnessed during Q3(note that Q2 addition was about 20 lakh per month).
Nearly 3 crore new demat accounts in a single year(growth of 90% YoY) is a feat that the management can definitely be proud of. Additionally this shows the trust of our fellow Indian Citizens in our own financial market - I certainly hope of market rewarding all of its disciplined participants.
Additionally, noted that the the number of live companies has increased to 18,268 (nearly 1000 new additions in the last 6 months) - sign of improving the visibility of new IPO’s leading to further expansion of Indian capital market.
Wising you all a profitable FY 2022-23.
AJ
Disclosure: Remain invested from lower levels. Views are biased.
Fun fact:
Below is the list of top 15 European nations by population. Source 
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Results for Q4 published. The snap shot from press release below:
Momentum has slowed down with revenue from operations falling by about 15 Crore to Rs. 136 Crore for Q4 as compared to 151 Crore reported during Q3. The reported profits has fallen by about 5 Crore QoQ.
Check the results here and the press release here.
AJ
Disclosure: Remain invested.
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IPO/Corporate action charges are the main reason QoQ Decline otherwise it would be flat or slightly up QoQ
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With a slew of IPO’s lined up this quarter(minimum 10 from what I understand), plus a record number of new demat accounts to be opened for LIC IPO, my sense is that CDSL will most likely have a bumper Q1. Assuming a moderate growth of 25% in topline and 30% in net profits for FY’23, the revenues can be 700 crores and 400 crores respectively.
One needs to bear in mind that revenues have compunded at 50% each in last two years and profits at 100% and 50% respectively in last two years.
With an estimated PAT of 400 crores, and current mcap of 12380 crores, CDSL is trading at 30 times FY’23 earnings, which in my view is reasonable for a company growing at 50% and with EBITDA margins of 60%+. Would love to hear anti-thesis pointers and divergent views from other participants.
Discl: Not invested.
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May i know the basis to assume 25% topline growth? It would be interesting to know.
Thanks,
AJ
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20 lakh accounts added during April 2022 - total investor accounts at 6.5 Crore as at end of April 2022:
Not bad considering March and April were not good months for investors in general.
AJ
Disclosure: Remain invested.
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Any clue why working capital has moved from negative to positive - a substantial move from -111 to 348?
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CDSL shot up >11% today. I am trying to understand if this was caused by a news item but was unable to find so far. Can anyone guide how to understand the root cause here for such a short term movement? I do realize this could go down as quickly.
Thank you.