CDSL to Consider Announcing First-Ever Bonus in the Upcoming Board Meeting

Understanding Central Depository Services Limited (CDSL)

Central Depository Services Limited (CDSL) is a Market Infrastructure Institution (MII) that plays a crucial role in the capital market structure. It provides a wide range of services to various market participants including exchanges, clearing corporations, depository participants (DPs), issuers, and investors. 

Role of CDSL in the Market

CDSL acts as a facilitator for holding securities in a dematerialized form and enables securities transactions. It facilitates the holding and transacting of securities in electronic form and ensures the settlement of trades executed on stock exchanges. These securities encompass a broad spectrum including equities, debentures, bonds, units of mutual funds, Certificates of Deposit (CDs), commercial papers (CPs), and Treasury Bills (TBills), among others. 

Additional Services Offered by CDSL

Apart from the primary functions, CDSL also offers several additional services such as e-Voting, M-Voting, the Myeasi Mobile App, and e-Locker. These services aim to enhance the convenience and efficiency of market operations for all participants.

Upcoming Board Meeting

In a significant recent development, CDSL has announced a Board meeting scheduled for July 02, 2024. The key agenda for this meeting is to consider the issuance of a bonus. If approved, this will be the first-ever bonus issue by the company.

Stock Performance

The stock performance of CDSL has been impressive. Over the past three months, the stock has rallied by 19%. On a Year-To-Date (YTD) basis, it has advanced by nearly 10%. Over the last year, the stock has surged by 87%, and in the past three years, it has delivered multibagger returns of 106.42%.

25th Anniversary Celebration

Recently, CDSL celebrated its 25th year of existence, marking a significant milestone that reflects the increased trust in the Indian capital markets. 

Profit More Than Doubled 

The company’s financial performance has also shown remarkable improvement. For the quarter ended March 2024, CDSL’s net profit more than doubled to Rs 129 crore compared to Rs 63 crore in the same quarter last year. This substantial growth highlights the company’s robust financial health and its growing importance in the market infrastructure space.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.