True-to-label pricing revision under process
CDSL is working on revising transaction charges to comply with SEBI's true-to-label circular, pending board and SEBI approval.
CDSL / guidance tracker
Keep management guidance in view.
Central Depository Services (India) · forward-looking guidance across the available source record.
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What management said would happen.
revenue
Continuous technology investment
Management plans to maintain elevated technology spending to build world-class platforms, with no specific cap on percentage of revenue.
Insurance repository awaits IRDA mandate
CDSL's insurance repository expects IRDA to make repository services mandatory, which could significantly scale the business.
Private company dematerialization by September 2024
MCA regulation mandates dematerialization of shares for private companies above certain thresholds by September 2024; CDSL is technologically ready.
No specific revenue or earnings guidance
Management explicitly stated they do not provide specific revenue or earnings guidance, citing market-driven variability.
Transaction charge reduced to INR 3.5 per debit from October 1, 2024
CDSL implemented a single transaction charge of INR 3.5 per debit instruction from October 1, 2024, as per SEBI circular, replacing the earlier slab-based structure.
No further pricing cuts planned, but competitive positioning maintained
Management stated they do not provide future guidance on pricing but aim to remain compliant and competitive, implying no immediate further cuts.
Insurance repository strategy shift to direct policyholder onboarding
CDSL Insurance Repository opened a portal for policyholders to directly create accounts, aiming to boost policy additions beyond the current ~1 lakh per quarter.
No specific revenue or earnings guidance
Management reiterated that CDSL does not provide specific revenue or earnings guidance, as per standard practice.
Annual issuer charges may increase subject to SEBI approval
Management indicated that discussions with SEBI regarding a potential increase in annual issuer charges are ongoing, but no timeline was provided.
Continued technology and talent investments
Management expects elevated technology and employee costs to persist as CDSL invests in scalability and regulatory initiatives.
Compulsory demat for private companies effective September 2024
Private companies with share capital >INR 4 crore or turnover >INR 40 crore must dematerialize shares before any transfer or capital raise.
Faster settlement cycles (T+0/instantaneous) under regulatory consultation
SEBI has released a consultation paper; CDSL is investing in technology and people to support optional T+0 and instantaneous settlement.
No specific revenue or earnings guidance provided
CDSL does not provide specific revenue or earnings guidance, as stated at the start of the call.
Issuer fee hike pending with regulator
Management indicated that a proposal for an issuer fee hike (first in 10 years) is with the regulator and may be approved at an appropriate time.