On June 14, CDSL’s share price dropped 4% after 56 lakh shares worth Rs 558 crore changed hands. The buyers and sellers of the block – representing a 5.4% stake – were not immediately known. Temporarily, few high net-worth individuals and local mutual funds were likely buyers, said dealers.

At 9:20 am, the stock was trading at Rs 1,008 on the NSE, down 3% from the earlier close. Trading volumes at 6.7 million shares resulted in 12 times the one-month average of trading volumes.

CDSL permits investors to deposit securities by an account opening in dematerialised form, getting revenues from transaction charges, account maintenance and settlement charges paid by depository participants and annual fees. Besides, the corporate action and e-voting charges are paid by firms admitting securities in the depository’s systems.

As of FY23 end, BSE held a 20% stake in CDSL. Among domestic funds, Parag Parikh Mutual Fund held a 4% stake, and Nippon India Mutual Fund had over 1.5% stake in the company.

CDSL got registered on the exchanges in 2017. Through the IPO, the BSE had a 50.05% stake in CDSL and sold 26.05% of its holding to meet SEBI norms.
Under SEBI regulations, a stock exchange cannot have more than a 24% stake in a depository.
For Q4FY23, CDSL’s net sales resulted at Rs 124.77 crore, down 8.64% YoY from Rs 136.56 crore in the year-ago period. The company’s net profit was Rs 63.10 crore, which fell 18.74% YoY.