After SEBI directive, CDSL introduces uniform fee of ₹3.50 per debit transaction

A new standardised fee of ₹3.50 per debit transaction has been announced by Central Depository Services (India) Ltd (CDSL), which will come into effect on October 1, 2024. This initiative is in accordance with SEBI’s 'True to Label' circular and seeks to streamline transaction costs for investors, as mentioned in a CDSL's filing. Previously, CDSL charged a fee of ₹3.75 to ₹5.50 per debit transaction.

The updated tariff will be applicable to all debit transactions related to shares. Additionally, CDSL will maintain certain discounts, including a ₹0.25 reduction for debit transactions made by female demat account holders (whether sole or first holders) and a ₹0.25 discount for transactions involving mutual fund and bond ISINs. A bond ISIN (International Securities Identification Number), is a 12-digit code that serves to identify a security, like a bond globally. ISINs are utilised for several purposes, including: identifying securities, monitoring trading activity, ensuring precise transaction settlements, facilitating international trade, and enhancing transparency and efficiency within the financial system.

The only listed depository service in Asia, CDSL boasts a market capitalisation of nearly ₹31,219 crore.  At the time of reporting, CDSL shares dropped 0.33% to ₹1,491.35 apiece on the NSE. The stock opened higher today at ₹1,503.75, in sync with the strong broader market, compared to the previous close price of ₹1,496.25. Over the past month, the stock has dropped 3.18%, but it surged 66.60% in the last six months, and gained 63.90% year-to-date (YTD). CDSL shares price surged as much as 124.5% over the past year to reach ₹1,490.15 apiece. Stocks of other capital market service providers have also experienced significant increases recently.

CDSL recorded an 82% increase in net profit for the quarter ending June 2024. Revenue for Q1 rose by 72%, climbing to ₹257.38 crore from ₹149.68 crore during the corresponding period last year.