cdsl stock update: BSE sells 5% stake in CDSL to comply with Sebi norms

Listed bourse BSE on Wednesday bought a 4.54% stake in Central Depository Providers (India) (CDSL) by a block deal to satisfy market regulator Sebi norms. In keeping with NSE block deal information, BSE bought 47.44 lakh shares for Rs 468 crore at Rs 985.98 apiece.

BSE held 20% of the entire fairness shares of CDSL as on March 31, 2023. Shareholding in depositories is ruled below the Sebi (Depositories and Members) Rules, 2018. Underneath regulation 21(1), a inventory change is allowed solely to carry a 15% stake in a depository. In January 2021, the market regulator set a restrict of 15% holding for establishments which was lowered from 24%.

Earlier in February, the BSE board authorized the divestment in Central Depository Providers (India) by the Supply for Sale (OFS) route.

CDSL acquired listed on the NSE in 2017. By the IPO, the BSE, which had a 50.05% stake in CDSL, bought 26.05%. Shares of CDSL gained 4% within the final three months, whereas BSE shares gained almost 29%.

CDSL, which permits traders to deposit securities by opening an account in digital type (dematerialised), will get its revenues from transaction expenses, account upkeep expenses, and settlement expenses paid by depository contributors in addition to annual charges, company motion and e-voting expenses paid by firms whose securities are admitted within the depository’s methods.