Central Depository Services (India) Limited (CDSL) has announced a new uniform tariff of Rs 3.50 per debit transaction, set to take effect from October 1, 2024. The move is expected to standardize transaction fees for over 13 crore investors who depend on CDSL for their depository services. This change was confirmed in a recent filing by the company to the stock exchange.
This uniform tariff aims to streamline costs associated with trading, simplifying the fee structure for all users of CDSL’s services. The depository is one of two major players in India, alongside the National Securities Depository Limited (NSDL), and plays a crucial role in holding and trading securities such as shares, bonds, and mutual funds in electronic form. By offering dematerialization services, CDSL helps investors convert physical securities into a digital format, ensuring the safety of their holdings.
Despite the introduction of a uniform fee, certain groups of investors will continue to benefit from existing discounts. Female demat account holders, either as sole or first holders, will still enjoy a Rs 0.25 discount per debit transaction. This is a continuation of CDSL’s effort to promote gender inclusion in financial investments. Similarly, a Rs 0.25 discount will also apply to debit transactions involving Mutual Fund and Bond ISINs (International Securities Identification Numbers).
CDSL emphasized that this move reflects its commitment to making financial services more accessible and affordable. “Central Depository Services (India) Limited, Asia’s only listed depository and wealth custodian for over 13 crore investors, is pleased to announce uniform tariff. CDSL announces uniform tariff of Rs 3.5/debit transaction,” said the company in a statement.
Established in 1999, CDSL facilitates electronic trading by allowing investors to hold securities in dematerialized form. As India’s leading depository, it offers critical infrastructure for the financial market, playing a pivotal role in safeguarding and managing investors’ holdings.
The revised tariff structure, while standardizing costs, also demonstrates CDSL’s role in enhancing transparency and ease of access to financial services. As the market evolves, initiatives like this are essential for encouraging wider participation among retail investors, especially at a time when market participation in India is on the rise.
With over 13 crore investors relying on its services, CDSL’s new fee structure is seen as a step toward greater cost efficiency in the depository sector. Investors and market participants will now have a more straightforward and predictable fee regime when conducting debit transactions through CDSL.
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