CDSL share price jumped nearly 15% today. Why stock is surging1 min read . Updated: 13 Jul 2021, 05:36 PM IST
- CDSL recently become the first depository to open more than four crore active Demat accounts
Shares of Central Depository Services (India) Limited (CDSL) surged nearly 15% on the National Stock Exchange (NSE) on Tuesday with the stock closing at ₹1,242.8 per share, up 14.72%.
''With the action happening in the IPO market, there may be new depositary accounts opening only for these IPOs as July and August look to be the busiest month for IPOs. That, technically means that there may be lot of business for CDSL,'' said Avinash Gorakshkar, Head of Research at Profitmart Securities.
''So, this may be one of the reasons why markets looking at large topline and profit jump coming in for CDSL as there business is dependent on these accounts that they open,'' he added.
The second Indian central securities depository based in Mumbai, recently become the first depository to open more than four crore active Demat accounts.
CDSL is one of the two depositories in India and the only listed one in the country. It received certificate of commencement of business from SEBI in February 1999. It facilitates holding and transacting in securities in the electronic form and facilitates settlement of trades on stock exchanges.
CDSL maintains and services 4 crore Demat accounts of investors or beneficial owners (BOs) spread across India. These BOs are serviced by CDSL’s over 580 depository participants (DPs) from over 20,600 locations.
Major shareholders of CDSL include BSE, Canara Bank, HDFC Bank, LIC and Standard Chartered Bank. It offers a host of services through its subsidiaries - CDSL Ventures Limited (CVL), CDSL Insurance Repository Limited (CDSLIR), CDSL Commodity Repository Limited, and CDSL IFSC Limited (CDSL IL).
Separately, BSE shares also surged 9.5% to ₹1,091 per share on the NSE on Tuesday.
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