The Daily Brief NSDL's IPO: Understanding the depository duopoly
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Jul 29, 2025 Dive into the fierce competition between NSDL and CDSL as they shape India's depository market. Discover how digital transformation is revolutionizing trading and the significance of DMAT accounts. Explore the upcoming market coupling in India's electricity sector, promising efficiency and unity in trading. Additionally, learn about innovative urban housing policies that leverage data for smarter living, and address the challenges facing the IT sector, including AI impacts and recent layoffs.
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Custodial Fees Depend on Folios
- Depositories charge custodial fees by the number of accounts (folios), not by value held.
- CDSL benefits from more folios despite lower value, giving it a revenue advantage in custody fees.
Transaction Volume Drives Revenue
- Most revenue comes from transaction fees charged per trade processed, regardless of trade size.
- CDSL processes more trades and shares than NSDL, giving it a transaction volume advantage.
NSDL Leads in Dematerialization Growth
- Demand for dematerialization is rising as the government mandates unlisted companies to issue shares only in digital form.
- NSDL leads with more registered companies and securities, especially in corporate bonds and debt instruments.