Though the broader market indices are down in early trade on Friday, August 23, 2024, the shares of Central Depository Services (India) Ltd or CDSL started trading about 6% up. Around 10 am, the shares were trading at Rs 1,509.90 which marked a jump of Rs 60 or 4.02%. The spurt followed the announcement of bonus share issue by the company. The stock has been on an upswing for the past one month gaining as much as 28%.
CDSL 1:1 bonus issue record date
The shareholders who owned CDSL shares in their accounts at the closing of market on August 23 would receive bonus shares of the company. The bonus issue was approved by shareholder at the firm’s AGM on August 17, 2024.
The management of CDSL had announced a bonus issue in the ratio of 1:1. In other words, the company would issue one share for free for every share held by any investor on the record date, which was fixed on August 24.
All-time high on August 19
The spurt in prices, took place just before the record date for its bonus issue of shares. According to reports, CDSL stock gained in 10 of the past 12 market sessions. The shares touched an all-time high on August 19, 2024.
Market dominance
A recent Motilal Oswal report stated that CDSL was gaining marketshare in terms of the total number of demat accounts as compared to its competitor NSDL. CDSL had 16.7 crore demat accounts in July 2024. NSDL’s marketshare went down 4.20 percentage points in the total number of demat accounts. CDSL enjoys a 77% share of the market in demat accounts.
Services CDSL provides
CDSL is an intermediary between investors and the stock market. It provides a centralised space for users to hold, transfer, and trade securities electronically in a secure manner. The services that CDSL provides include securities, trade settlement, e-Voting, M-Voting e-Locker. CDSL was founded in 1999. It has its headquarters in Mumbai.
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CDSL has a marketshare of almost 77% in the demat accounts in India. It is continuously gaining marketshare compared against its competitor NSDL. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
