CDSL crosses 1 crore Demat accounts
Central Depository Services (India) Limited (CDSL) is now pleased to announce that the number of active demat accounts opened with it as at the end of August, 2015 has crossed 1 crore.
September 01, 2015 / 06:56 PM IST
Central Depository Services (India) Limited (CDSL) established in 1999 is one of the two depositories functioning in India. CDSL has been growing steadily due to support received from the different stakeholders and is now pleased to announce that the number of active demat accounts opened with it as at the end of August, 2015 has crossed 1 crore. It is a significant milestone for CDSL in its operations. With an average incremental market share of 54% over a decade, today CDSL commands overall 42% market share in the total accounts opened in demat space.
On this occasion, Shri. N. Rangachary – Chairman, CDSL said “The advent of CDSL in the capital market has done what precisely the competition was expected to deliver: Nil custody charges, Nil charges for incoming securities into demat account, Reduction in tariff per debit transaction from ad valorem basis to 1/12th of a dollar (`5.50 per transaction), product innovation and above all substantial improvement in quality of service delivered by the DPs and Depositories in the Capital Market.” Thanks to the technological innovations, CDSL has the least cost structure for setting up of a large DP network which helped in spreading the demat culture across the country. As technologies handled in CDSL advances, the impact on the cost structure is bound to be market friendly.
As a Market Infrastructure institution with the vote of confidence of 1,00,00,000 investors, the next phase of development is to work with the Government and regulators in financial sector to make ‘single operational demat account for all financial assets’ a reality. This development will significantly reduce the cost to investors while improving the service levels in the financial sector. Under ‘Single Demat Account’ it is expected that assets such as fixed deposits of Banks and Corporates, Insurance Policies, Pension Products/Records, Warehouse Receipts, etc., will be kept in demat form.
On this occasion, Shri. P. S. Reddy – MD&CEO, CDSL said that “We are confident that in the years to come the dominance in the industry will be redefined and will be determined only by quality of service rendered, aided by constant adoption and upgradation of technology with a resilient infrastructure. CDSL shall continue to play its role as a Market Infrastructure Institution for greater financial inclusion driven by financial literacy across the country.”