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Questions across 10 calls

Nehal Vora

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Central Depository Services (India) Limited

Central Depository Services (India) Limited CC-Feb26.pdf · 2026-02-02
So, on the first question on technology, see, as we grow in business, it's like -- as I've said many times, it's like similar to basically an infrastructure company. So, as we increase capacity, the costs have to grow to ensure that the latest technology is used. There are newer products also which have been coming into play, which the regulator keeps on kind of doing some time-to- time. There seems to be some cross connection. Can you put yourself on mute? So, as we have grown from '23 to '25, the newer forms of technology, both on application, on hardware, network and security. All 4 areas, we are trying to ensure that the latest products are put into play. And that says the capacity building process so that as the surge in case if it happens like we have seen in 2020, '21, it becomes seamless for the market. It does not face any issues from the standpoint of people wanting to open newer accounts. Also, the latest survey of SEBI is also saying that there are a lot of people whilst have participated in the securities market, a lot of people have known and are willing to participate. There's a potential, which is there. So, in sync with that potential, we have to be prepared to prepare the necessary technology infrastructure to be in place so that in case if those volumes come into the market, it becomes seamless from that standpoint. And on your second question, I'll ask Sunil to answer.
So, the point is that as newer technology comes into play, there is, as we all know, really artificial intelligence also is coming into play. We would like to ensure that our infrastructure has the latest in sync technology. Also, in other products like application, security, etc., there are newer products which keep on coming. So, it depends on the kind of innovations which are happening, which will entail in future, whether this will continue. But the process of ensuring that a seamless experience is there for all the participants is our intent and all basically will be able to see their holdings, etc., in a very seamless manner is what is basically the intent.
Central Depository Services (India) Limited CC-Aug25.pdf · 2025-07-28
So, one is at the outset, we do not give forward -looking statements. So, I will restrict my comments to the current expenses and what the overall theme and intent is. See, the two important inputs for CDSL as a market infrastructure institution is the technology spend and the human resource spend. So, as we are growing in size, and I would urge you to even look at the market infrastructure institutions with regulations which SEBI have mooted. For depositories, there is a separate regulation and separate for exchanges and clearing corporation. It constitutes into vertical 1, vertical 2 and vertical 3, where the IT and critical operations form a part of vertical 1, regulation risk and control functions form part of vertical 2 and business and others form part of vertical 3. So, as per that, the requisite focus needs to be given for continuity of critical operations and technology and as we are growing in size and sophistication, we need the people to get recruited in all these three verticals at the paramount form. Also, the year-end performance appraisal variable payouts have been reflected in this quarter. So, that is the other thing which you will need to factor in. Our intent is to build a more long -term resilient infrastructure institution as I have been saying in all my past investor calls. So, it is more of a long-term play which this company is going into, had been, has been and will continue to embark on. On the technology front, on all the four components of infrastructure, application, security and network is where we are continuously innovating as per the new products which are getting initiated. This is to bring in a lot of nimbleness in our systems but at the same time bring in the best-in-class products. So, it is a combination of building newer platforms and also enhancing the efficiency and the sophistication of the infrastructure.
Yes. So, on the first count, it is mainly an account of increase in folios which are relevant to the CDSL part as per the framework which SEBI has prescribed on how such charges are supposed to be charged to companies. So, that will answer your first question. In the unlisted front while it is a new source, it is kind of early days in terms of the overall scheme of things. So, again, going back to my earlier question that we want to build a strong resilient long -term business proposition and which is seamless. So, I think that when you get more and more people using your platform and then that causes the increase in the over all revenue on a long -term sustainable basis. On the second question, I will ask Sunil to answer that.
Central Depository Services (India) Limited CC-Mar25.pdf · 2025-05-05
Okay. Thank you, Supratim. First, on the technology spend, I have been saying that we are in the process of building and consolidation. It's on all the core aspects. It's the hardware, the infra, the applications, the security and the connectivity. And tha t's a process which we are going through to obviously bring in newer tools and techniques so that the market can really benefit from better tools and technology, speed would go up, etcetera. But the intent being is that we are market infrastructure company, and technology is one of the key building blocks. And it would need a continuous assessment of newer tools and newer techniques so that the market will benefit from that. I don't think we g ave out in the public domain as to what is a onetime versus a recurring expense. But we have kind of maintained a steady percentage as part of the revenue on the technology costs. And basically, the regulators' expectations also have been to ensure that the newest technology is being deployed. Whilst this is a policy nudge, but from ou r end we continuously assess and improve upon our technology infrastructure on a very, very serious note. As regards to the second question on KRA, it's a process, which is the same interview of the SEBI Chair also. It talks about the efficiency of the KRA. We will have to wait and watch how that really pans out because it's yet not come out. It is all work in progress. So we will see how it goes. But I'm sure that all the aspects will be taken into consideration before we move forward. And the third one on the dividend payout, I think there has been a calculation error at your end. We are about 61.3% payout. So , we've continued to maintain our policy guidance on dividend payout at 60% of our operating profits. In fact, it is slightly more than that this year.
We don't give that because, see, I'll tell you why we don't give it, Supratim, because it's a combination of fusion costs. So, you cannot segregate what is infra versus application. There is some, which is mixed cost. So , it would not create a right differentiation, and it is not right to even differentiate. The important thing is to ensure that the systems remain strong and the systems remain modern. Whatever it takes to do that and that has been our intent whether it is in the hardware end, network end, security end or the application end, whatever it takes to ensure that intent is...
Central Depository Services (India) Limited CC-Dec24.pdf · 2025-01-27
Okay. Continue You can finish your questions.
So basically, Amit, see the overall market conditions while the demat accounts continues to grow that had also seen some slowdown. In the months, which were the full month in September, we had about 40 lakh demat accounts opened. That has now dropped to about 30 lakhs. Obviously, the transaction-making ability in a bull market is far higher as compared to a bear market. So overall, the sluggish sentiments contributed by geopolitical issues, overall slowdown in the world, certain regulatory changes etc., have led to a muted participation which is seen across the board, whether it be transaction volume, delivery volumes and hence the market-based delivery transaction income for CDSL. However, the important point which needs to be kept in mind is that we continue to build our value proposition, keeping it probably one of the preferred depositories for investors to open accounts and therefore, the incremental market share percentage is kind of demonstrated. However, we don't want to base ourselves on past laurels. We continue to invest ourselves to create that kind of value proposition as we move forward. In terms of specific numbers, we don't put that out in public domain. And hence, it is based on the overall numbers which have already been put out in our investor presentations and on our website also. In terms of technology, it's a continuous process of evolution. I think the most important constant in the technology world specifically, overall, also, but specifically technology world is that change is the only constant. And we need to evolve both in terms of sophistication, prowess and the latest tools so that the value proposition that CDSL provides to its relevant stakeholders continues to grow and continues to remain. And in terms of the account opening, online charges with CVL also, I think is kind of in-line with the overall muted contribution of volumes in the market which has really led to this. So, we are in a way an infrastructure company. Our focus and our intent is to provide the right infrastructure forthe rest of the market. So, we don't drive any of these, from a short-term quarter- on-quarter, but it's a more long-term play which we are. for.
Central Depository Services (India) Limited CC-Jun24.pdf · 2024-08-05
So yes. The first point, we are like an infrastructure company. Technology and human resources are two building blocks for building this infrastructure. And technology doesn't build fast enough. We need to plan it well. And as the growth happens, we need to plan for our hardware application security and all components of technology. This is more of a proactive investment, which will continue to happen to ensure that we continue to have the best type of technology platforms for the market, which are best-in-class in terms of the leading practices and technology, as you know, evolves also a lot. So, we need to ensure that best-in-class products are used on all our platforms. On the second question, as I said earlier, it's compulsory not for all private limited companies, there are certain conditions under which it will be made compulsory, there are certain thresholds for sales and share capital. And only those companies will be required to be dematerialized if they transfer the shares or they raise any share capital. So, it's not, it will have to be seen how it pans out. And however, we have built our resources, both from the technology and human resource standpoint to ensure that we are able to process the load which will come in, and we are fully prepared for it. For the third question, I'll ask Sunil to answer.
We don't give any forward-looking statements, but the overall ethos is to build a robust, resilient platform. And whatever it takes, we will have to continue to build in terms of costs. But I will not be able to comment specifically whether the same run rate will continue or not because we don't give any forward-looking statements.
Central Depository Services (India) Limited CC-Mar24.pdf · 2024-05-06
So, the first question is a forward-looking statement. we don't give forward guidance. So, I would not be able to give an answer. The point in question is folios, which have happened in the previous financial year, which are get billed to the companies in the first quarter. So once the first quarter results, whatever would be announced, you will have some perspective at that stage. On the second question on the unlisted company. As I have said in my last investor call also, the deadline is September 2024. And it has conditions of private companies, which have a turnover of INR40 crores or share capital of INR4 crores. But only when these companies would like to either raise capital or transfer any capital that's the time the demat will be required to be done on a compulsory basis. So, it will have to be wait and watch because there are these conditions only when they get triggered, that's the time the demat opportunity will come into play. It is not kind of a simple rule. It has certain ifs and buts, so only when all of them get satisfied. So, it is difficult to predict what will be the population at this stage. We'll have to wait and watch as the further quarters move forward. On the insurance side, there has been a few amount of changes, but it's kind of really work in progress. We have a full team now looking at our insurance repository. I've spoken about it about2 or 3 quarters before. So we have now a team in place. And we have basically the right building blocks to ensure that this kind of the opportunity would translate into business as we move forward.
I'll ask the CFO to answer that.
Central Depository Services (India) Limited CC-Sep23.pdf · 2023-11-01
Okay, thank you. On your first question, on IPO and corporate actions, it's kind of market-driven, so it's kind of difficult to predict. And we don't give any future reference points, so we would not able to kind of give a picture of the future. That's for you to assess. Your second question was on the KRA charges, on fetch, and so I think it's broadly driven by the buoyant market conditions; number of demat accounts growing; and participation growing both in terms of delivery, volumes; etc. We don't generally give the bifurcation on how much is fetched versus creation it's a consolidated number. Sorry, your third question was?
Again it's difficult to predict what has caused this outcome. It's kind of the overall buoyant market conditions. What has led to whether it's fetch or increase in KYC creation? It's a culmination of variety of factors and it plays one upon the other, so it's difficult to give a answer which would be absolutely give the reason. It's a multiplicity of factors which leads to this, and hence, we are not able to give you a specific answer on that.