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In a stock exchange filing, CDSL said that it has achieved the significant milestone of registering over 15 crore Demat accounts solidifying its position as the first depository in India to realise this feat.
The announcement highlights CDSL’s leadership in transforming India’s capital markets and providing secure, efficient and accessible services for millions of investors, the depository said in a release.
In November 2023, the depository had reached the milestone of 10 crore demat accounts.CDSL, Asia’s first and only listed depository, was established in 1999 with an aim of offering convenient, reliable and secure depository services.
As an Indian Market Infrastructure Institution (MII), CDSL plays a critical role in the electronic holding and transaction of securities. The depository not only provides safe custody of securities but also facilitates the settlement of trades, ensuring smooth and efficient market operations.
It serves a diverse group of market participants, including depository participants, issuers, investors, Registrar and Transfer Agents (RTAs), clearing corporations, and exchanges.CDSL’s net profit for the quarter ended December 2024 increased by 21% year-on-year to ₹130 crore, compared to ₹107 crore in the same period last year. However, the growth in net profit was slower than the rise in total income, which surged nearly 30% to ₹278 crore.
Additionally, the number of new Demat accounts opened during the quarter was the lowest since Q4 of FY24. New account additions for Q3 amounted to 92 lakh, a decline from 1.18 crore accounts opened in the September quarter.
Brokerage firm B&K Securities downgraded CDSL to a “sell” rating from its previous “hold” stance while reducing its price target to ₹1,100 from ₹1,300. Similarly, Nuvama lowered its price target for CDSL to ₹1,510 from ₹1,740, maintaining its “hold” rating.
Both brokerages cited concerns over sluggish secondary market volumes and the potential negative impact on primary market activity.
Shares of CDSL were trading 1.19% lower at ₹1,225.2 apiece on the BSE at 10:54 am.
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