listen to the analyst meeting recording, in that the answer is given if I remember correctly following are charges
Yearly Fixed charges from each corporation with CDSL, these are listing fee
CDSL cannot increase on its own. They have to take delegation to SEBI (?). So both NSDL/CDSL should do representation. Then regulatory body take decision to increase the cost
Each demat account charges per year, not much but recurring revenue
Corporates can choose CDSL or NSDL there is no competitive advantage, its up to them what they choose. This means CDSL cannot guarantee/influence(at least legally/officially) corporation to choose itself as DP
So we can be fairly sure that the major income is from
– yearly listing fee from corporates
– DMAT charges once a year
Both are regulated and a delegation need to be involved to change it.
How can CDSL increase its revenue
– get more customers
– get fees hiked.
recently there were proposal for below which can increase revenue of CDSL/NSDL which include
– DMATting of the private firms(the start ups and all private firms in India) . This is not realized yet.
– DMATting all insurance policies → This is materialized, but as per recent they choose “DigiLocker” solution by the govt. This is major revenue loss for the CDSL/NSDLs. Possibly due to govt has done lots of insurances using govt policies, So they want to keep it as less expensive as possible.
SEBI comes as a Capital Market regulator and CDSL being a Depository is an entity under SEBI’s purview. Having said this, only instruments that can be traded in the market (primary/secondary) would fall under capital market.
By saying this, do you mean insurance products are likely to be traded?
Regarding the new announcement on insurance Dematization… I just want to find how it work. Will the insurance companies dematerialise or the customer have to do…
If customer have to do, many brokers like paytm, zerodha would open up opportunities to dematerialise. else the customer who have CDSL account can directly do it…
What about insurance policy holders who doesn’t have demat account? If I am not wrong they would prefer to dematerialise with their own demat partner (mostly NSDL)
When new policies are issued will that be dematerialised when issuing itself.
However, Dematerialisation is a misnomer here. What is being looked at is digitising the insurance products which every industry participant would look at offering for the obvious benefits.
In my limited knowledge, I think we need to focus on transaction volumes growth as that largely determines the money CDSL makes. Is their a way we can get that data every month (like how we get similar data for MCX)?
Can you please elaborate more on the minimum shareholding threshold? I believe BSE holds 20% currently, is that the requirement from SEBI for exchanges ?
The account addition continues to be healthy with nearly 18 lakh new accounts added during January 2023. Expect a disclosure on hitting 8 crore accounts soon.
Live company additions >200 for Jan.
