CDSL TODAY 18.99% Growth
In Friday NSE trading, shares of the securities depository company CDSL surged 18.99% in just two days, reaching a new 52-week high of Rs 2387.
For the quarter that concluded in june, the depository services company posted a consolidated profit of Rs 109 crore. Supported by a strong topline and EBITDA, its profit increased by 35.4% YoY from Rs 80 crore in the equivalent quarter of the prior year.
Consolidated operating revenue for the quarter increased by 39.2% YoY to Rs 207.3 crore.
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According to current exchange statistics, this would be CDSL's first bonus share issuance if authorized. Along with National Securities Depository Ltd. (NSDL), CDSL is one of India's two top depositories. It makes it easier for assets to be stored and exchanged digitally and for trades to be settled using Demat accounts.
With 10.4 crore demat accounts under management, CDSL became the first listed depository in the country to register more than 10 crore accounts in November.
Important organizations including the Bank of India, State Bank of India, and Bombay Stock Exchange support it. In a recent block sale, BSE sold a 4.54% interest in CDSL.
With 10.4 crore demat accounts under management, CDSL became the first listed depository in the country to register more than 10 crore accounts in November.
Important organizations including the Bank of India, State Bank of India, and Bombay Stock Exchange support it. In a recent block sale, BSE sold a 4.54% interest in CDSL.
- What is a depository?
A depository helps to create a more secure and efficient system by serving as a centralized store for electronic securities. By storing securities in an electronic or dematerialized state, a depository's main purpose is to do away with the necessity for physical certificates. Investors acquire a unique Demat account number and have their assets electronically recorded when they create Demat accounts with depositories such as CDSL or NSDL. Investors can handle and keep their assets in this virtual locker, which is represented by this account number.
A depository also serves as a middleman in securities transactions, bringing together buyers and sellers. The depository updates the electronic records in the Demat accounts involved in the transaction when an investor wants to purchase or sell shares, ensuring a seamless transfer of ownership. Comparing this electronic transfer to the more conventional technique of sending physical certificates, it is faster and takes much less time to settle.
A depository also serves as a middleman in securities transactions, bringing together buyers and sellers. The depository updates the electronic records in the Demat accounts involved in the transaction when an investor wants to purchase or sell shares, ensuring a seamless transfer of ownership. Comparing this electronic transfer to the more conventional technique of sending physical certificates, it is faster and takes much less time to settle.
