Central Depository Services Limited (CDSL) is depository based in Mumbai. Its main function is the holding securities either in Dematerialized form(electronic form). CDSL is a leading securities depository in India by incremental growth of Beneficial Owner (“BO”) accounts over the last three Fiscals and by the total number of registered Depository Participants (“DPs”).
Company offers following services to its Clients:
Depository Participants and other capital market intermediaries: CDSL offers dematerialization for a wide range of securities including equity shares, preference shares, mutual fund units, debt instruments,government securities. As a securities depository,CDSL facilitate holding of securities in electronic form and enable securities transactions (including off-market transfer and pledge) to be processed by book entry. Company has a wide network of DPs. As of November 30, 2016, the total number of DPs registered with us was 584 with over 17,000 centers spread across 29 states and 7 union territories in India as well as two centres in Dubai.
Corporates: Company offers facilities to issuers to credit securities to a shareholder’s or applicant’s demat accounts to give effect to a range of non-cash corporate actions such as bonus issue, subdivision of holdings and conversion of securities in a merger, amalgamation or in an initial public offering.
Capital market intermediaries: Company offers KYC services in respect of investors in Indian capital markets to capital market intermediaries including to mutual funds.
Insurance Companies: Company offers facilities to allow holding of insurance policies in electronic form to the holders of these insurance policies of several insurance companies.
Other Services: CDSL also offers other online services such as e-voting, e-Locker, National Academy Depository, easi (Electronic Access to Security Information), easiest (Electronic Access to Security Information and Execution of Secured Transaction) drafting and preparation of wills for succession (my easi will) mobile application (my easi, m-voting) and Transactions using Secured Texting (TRUST).As of November 30, 2016, more than 4,000 companies had signed agreements with CDSL to avail company’s e-voting services.
As of November 30, 2016, CDSL Insurance (Subsidiary of the Company) had opened more than 300,000 e-Insurance Accounts (“e-IAs”) in which it held over 58,000 insurance policies in electronic form.
Some Other Services CDSL offers are as follows:
Myeasiwill : Company also offer online services such as Myeasiwill, launched in collaboration with “Will jini” Succession Services. This online service offers will drafting solutions, a transparent way of unencumbered succession of assets to the users’legal heirs. As of November 30, 2016, company has received over 250 registrations for this service.
e-Notices : CDSL has recently introduced this to allow companies to electronically send documents to their shareholders electronically as part of the ‘Green Initiative’ in the Corporate Governance by Ministry of Corporate Affairs. As of November 30, 2016, more than 250 companies have registered for this service.
CDSL had commenced its depository business in 1999 with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants. Company was initially promoted by the BSE which subsequently divested a part of its stake to leading Indian banks. Company has connectivity with clearing corporations of all the leading Indian stock exchanges including the BSE, National Stock Exchange (“NSE”).
Subsidiaries of the Company:
- Company has the following five Group Companies, namely:BSE Limited.
- Indian Clearing Corporation Limited.
- Marketplace Technologies Private Limited.
- CDSL Insurance Repository Limited.
- CDSL Ventures Limited.
Out of these five Group Companies, BSE is the Promoter, and CDSL Ventures Limited and CDSL Insurance Repository Limited are company’s Subsidiaries.
TOP 10 Shareholders:
|Sr.No.||Shareholder Name||Number of Equity Shares held||Percentage of Equity Share Capital %|
|2.||State Bank of India||10,000,000||9.57|
|3.||HDFC Bank Limited||7,500,000||7.18|
|4.||Standard Chartered Bank||7,500,000||7.18|
|6.||Bank of India||5,820,000||5.57|
|7.||Bank of Baroda||5,300,000||5.07|
|8.||Life Insurance Corporation of India||4,336,750||4.15|
|9.||Union Bank of India||2,000,000||1.91|
|10.||Bank of Maharashtra||2,000,000||1.91|
Strength’s of the Company:
- Experienced senior management team.
- Stable revenue base due to repeat business in multiple offerings in the Indian securities and financial services market.
- High economies of scale leading to steady growth in profitability.
- India’s leading securities depository with the highest share of incremental growth of BO accounts.
- Convenient and dependable depository services at competitive prices for a wide range of securities.
- State-of-the-art technology and robust infrastructure and IT systems.
Future Growth Strategies of the Company:
- Continue to focus on developing new DPs relationships and leveraging our existing DP network.
- Continue to introduce new offerings and scale up recently started businesses.
- Continue to invest and upgrade our IT infrastructure and systems leading to Enhancement of operational efficiency and service quality.
- Continue investor education initiatives to foster a rise in the number of potential new investors and deepening of the Indian securities market.
Positives for the Company:
- Stable revenue due to guaranteed Business (Fixed annual charges collected from companies)
- Experienced Senior management.
- Consistent Dividend Payer
- High Growth in Transaction Volumes.
- High profit margin business.
Financials of the Company:
|(in Crores)||FY 12||FY 13||FY 14||FY 15||FY 16||31st Sept FY 17|