The BSE-promoted Central Depository Services (CSDL) has pipped National Securities Depository (NSDL) in terms of demat accounts where all securities held in the name of respective investors are credited, the data until December 31, 2019 shows. It was NSDL that had pioneered the concept of dematerialising physical shares in the country.
“In terms of the value of securities dematerialised, number of companies, including unlisted companies, and on other parameters, NSDL is still ahead. All unlisted companies are now required to ensure that shareholders get their shares dematerialised, and “these companies also preferring NSDL,” said Nageshwar Rao, managing director, NSDL. He noted NSDL has over 30, 000 companies with it, and its “market share of demat custody value is 89.9 per cent, which is constant for the last seven years”.
He also said the depository was now focused on opening digital accounts with top banks, acting as a depository participant (DP). “We are also expecting the UIDAI to relax e-KYC norms, allowing depositories like us to perform e-KYC.”
Meanwhile, Nehal Vora, managing director & CEO of CDSL, noted that it was now the first depository to open a branch at International Financial Service Centre (IFSC) at GIFT City in Gujarat. Vora said: “The branch at IFSC will help introduce products like depository receipts, masala bonds, and exchange-traded funds (ETFs), along with hybrid products and similar delivery-based trading.”
This means now on trading in stock exchanges at GIFT IFSC, which until now was confined only to derivatives trade in equities and commodities, can also for spot market.
Also, foreign investors can buy Indian companies shares and hold them, while Indian investors, as part of their permissible limit to invest money overseas, can hold Apple, Goggle, Microsoft, and other companies shares in their demat accounts with depository participants in GIFT IFSC.