Welcome!!

CDSL India
Yogesh Kundnani (yogeshk@cdslindia.com)
Amit Krishnan (amitk@cdslindia.com)

CDSLs Major Stakeholders

Sr. No.

Name of shareholders

% terms to total
equity

Bombay Stock Exchange Limited

36.60

State Bank Of India

9.57

Bank Of Baroda

9.57

Bank Of India

9.57

HDFC Bank Limited

14.36

Standard Chartered Bank

7.18

Other Leading Banks

13.15

TOTAL

100.00

CDSL Today
BO accounts

5.67 mn

DPs registered

475

Issuer Companies admitted

6,255

Securities under custody

Volume
Value

70.08 bn
USD 137.02 bn

Depository Structure
Clearing
Corporatio
n

Issuer /
Registra
r

Depository

Clearing Members

DP

DP

DP

DP

Beneficial

DP

DP

DP

DP

Owners

Depository Role

What a depository does

Records ownership of securities in electronic form
Records transfer of securities
Facilitates Pledge/Lock-in/Freezing of securities
Updates records when fresh securities are issued or
existing securities are extinguished in case of buy-back
Makes available up-to-date list of Investors (BOs) for
corporate actions
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Legal Framework

Legal framework

The Depositories Act, 1996

Investor has the option to hold securities in Paper mode
or Electronic mode
Depository will be the Registered Owner of the
securities in the ROM
Rights, Liabilities and Benefits are with Shareholders
( who will be the beneficial owners of the securities )

Legal Framework
Depository to have net worth of Rs. 1 bn.
Investor holdings in the depository cannot be attached
except for orders from competent authorities
Mandatory indemnification against negligence

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Legal Framework
SEBI (Depository & Participant)
Regulations
Criteria for setting up of a Depository and for
becoming a Depository Participant

Depositorys Bye-Laws
Every depository to frame detailed Bye-Laws and
procedures for its operations
All participants will enter into agreement to follow the
rules and regulations
11

Type of DPs

Public Financial Institution

Bank under RBI act.
Foreign Bank with RBI approval
State Financial Corporation
Custodian
Clearing Corporation or Clearing House of Stock
Exchange
Stock Broker (CM)
Non Banking Finance Company (NBFC)
Registrar & Transfer Agent
12

Securities admitted

Equity shares
Preference shares
Debentures and bonds
Commercial papers
Certificates of deposits
Government securities
Exchange traded funds
Pass through certificates
Warehouse receipts (Commodities)
13

Type of accounts

Individual
Clearing Member
Corporate
FII
Bank
Mutual Fund
14

Background of structure
India is a vast country with large number
of investors
Accounts are opened and maintained by
DPs
Provide impetus to dematerialisation
BO level holdings are maintained as
compared to nominee level holding
Physical structure is replicated in demat
15

Background of structure
Switchover from physical trading to
demat trades phase wise
Demat initially made mandatory for
institutional investors
Subsequently, made mandatory for retail
investors
16

Merits of structure
Vast distribution network of DPs utilised
effectively
Competition amongst DPs
Ensures availability of depository services all across
the country
Benefits of depository availed by all types of
investors
Ensures superior service quality
Cost benefits
17

Benefits to Investors

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Security-related benefits to Investors in the

depository system
Offers safety and convenience compared to holding securities in
physical form
Enhances liquidity by instantaneous transfers
Operational risk minimised
Settlement cycle reduced from weekly settlement to T+2

19

Other benefits to Investors in the depository system

Change of name, address, Power of Attorney, deletion of
deceaseds name - can be done across companies by one single
instruction to DP
Each share is a market lot for the purpose of transaction - so no
odd lot problem
Any number of securities can be transferred/delivered with one
delivery order. Therefore, paperwork and signing of multiple
transfer forms is done away with
No stamp duty on transfer of securities

20

Risk Mitigation Measures

21

Internet based services easi and easiest

SMS Alerts (SMART)
Dormant account monitoring
Concurrent and Internal audit of DP
operations
Stringent networth requirements for DPs
22

easi
(electronic
to securities information)
Statement ofaccess
Holding of Securities in CDSL Demat
Account
Last 7 days transactions report for any ISIN
Know rate and valuation of holdings
Balances are updated after every 15 minutes from
main system
Information about DPs, Issuers & RTAs
Printing and downloading of Statement of Holding
23

easiest
(electronic access to securities information &
execution of secure transactions)
Issue of
On-Market
Early Pay-in
Off-Market
Inter-Depository
instructions through internet
24

Some recent innovations

SMART SMS Alerts to registered accountholders for
all debits and for credits arising from corporate actions
and IPOs
Information about corporate announcements to
registered users of easi

25

Thank You!!

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