CDSL – Stock for our children

listen to the analyst meeting recording, in that the answer is given if I remember correctly following are charges

1. Yearly Fixed charges from each corporation with CDSL, these are listing fee
2. CDSL cannot increase on its own. They have to take delegation to SEBI (?). So both NSDL/CDSL should do representation. Then regulatory body take decision to increase the cost
3. Each demat account charges per year, not much but recurring revenue
4. Corporates can choose CDSL or NSDL there is no competitive advantage, its up to them what they choose. This means CDSL cannot guarantee/influence(at least legally/officially) corporation to choose itself as DP

So we can be fairly sure that the major income is from
– yearly listing fee from corporates
– DMAT charges once a year
Both are regulated and a delegation need to be involved to change it.
How can CDSL increase its revenue
– get more customers
– get fees hiked.
recently there were proposal for below which can increase revenue of CDSL/NSDL which include
– DMATting of the private firms(the start ups and all private firms in India) . This is not realized yet.
– DMATting all insurance policies → This is materialized, but as per recent they choose “DigiLocker” solution by the govt. This is major revenue loss for the CDSL/NSDLs. Possibly due to govt has done lots of insurances using govt policies, So they want to keep it as less expensive as possible.

Edited: for spell mistakes