Mumbai, Jan 26 (IANS) Central Depository Services (India) Limited (CDSL), the country’s largest depository has reported a 21.5 per cent surge in year-on-year net profit to Rs 130 crore in the October-December quarter of the current financial year (2024-25), compared to Rs 107 crore in the same quarter of 2023-24.
The total revenue of the country’s largest depository service company for the third quarter went up to Rs 298 crore, from Rs 236 crore in Q3FY24. The company had raked in a revenue of Rs 359 crore in Q2FY25.
CDSL announced that it has become the first depository to register over 14.65 crore demat accounts as of December 31, 2024. During the October-December quarter of the current financial year around 92 lakh new demat accounts were opened.
CDSL is India’s leading depository for holding and transacting securities electronically. It also facilitates the settlement of trades on stock exchanges.
In the March-ended quarter of FY24, CDSL registered a record 1.09 crore Demat accounts taking the total number of these accounts past the 11.56 crore mark at the time. The number of Demat accounts in India has been growing steadily, even during periods of market uncertainty. During the fiscal year 2023-24, over 3.26 crore new Demat accounts were opened with the highest quarterly registration.
The growth in Demat accounts is a sign of continued interest from retail investors in the stock market.
A Demat account is a digital account that holds securities like stocks, bonds, mutual funds, and ETFs. It’s similar to a bank account, but instead of money, it stores financial securities.
The advantage of a Demat account is that it is secure and reduces the risk of theft or forgery. It is also convenient as one can open a Demat account online and access it through a mobile app or NetBanking.
Besides, Demat accounts enable the electronic transfer of shares, which makes trades faster. They also confer the advantage of consolidating all investments in one place which makes it easier to monitor them.
CDSL was set up in 1999 and plays a crucial role as the Indian Market Infrastructure Institution (MII), facilitating electronic holding and transaction of securities and facilitating settlement of trades. It provides services to a broad spectrum of capital market entities, including depository participants, issuers, investors, RTAs, clearing corporations, and exchanges.
–IANS
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