The Central Depository Services (CDSL) intends to create a ‘single operational demat account for all financial assets’. Under what is mentioned as a ‘Single Demat Account’ it is expected that assets such as fixed deposits of banks and corporates, insurance policies, pension products/records, warehouse receipts, etc., will be kept in a demat form.
CDSL said in a release that today the number of active demat accounts opened with it has
crossed the significant operational milestone of one-crore mark. To commemorate the occasion and to thank all the investors, CDSL commissioned renowned sand artist Sudarsan Pattnaik to create a sand art structure at the Puri beach in Orissa. The sculpture created by Pattnaik depicts the environment friendly green Initiative services of CDSL as well as the initiative of single demat account. CDSL said with an average incremental market share of 54% over a decade, today it commands overall 42% market share in the total accounts opened in demat space.
N. Rangachary, chairman of CDSL, said the advent of CDSL in the capital market has done what precisely the competition was expected to deliver – nil custody charges, nil charges for incoming securities into demat account, reduction in tariff per debit transaction from ad valorem basis to 1/12th of a dollar (Rs 5.50 per transaction), product innovation and above all substantial improvement in quality of service delivered by the DPs and depositories in the capital market.
The release said with effective use of technolgy, CDSL has the least cost structure for setting up of a large DP network, which helped in spreading the demat culture across the country. As technologies handled in the CDSL advances, the impact on the cost structure is bound to be market friendly.
P. S. Reddy, MD&CEO, CDSL said CDSL is confident that in the years to come the dominance in the industry will be redefined and will be determined only by quality of service rendered, aided by constant adoption and upgradation of technology with a resilient infrastructure. CDSL shall continue to play its role as a market infrastructure institution for greater financial inclusion driven by financial literacy across the country, he added.
