The Daily Brief NSDL's IPO: Understanding the depository duopoly
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Jul 29, 2025 Dive into the fierce competition between NSDL and CDSL as they shape India's depository market. Discover how digital transformation is revolutionizing trading and the significance of DMAT accounts. Explore the upcoming market coupling in India's electricity sector, promising efficiency and unity in trading. Additionally, learn about innovative urban housing policies that leverage data for smarter living, and address the challenges facing the IT sector, including AI impacts and recent layoffs.
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Depositories Enable Market Convenience
- India's capital market convenience relies heavily on depositories like NSDL and CDSL.
- They eliminate paper certificates by digitizing securities, enabling frictionless trade settlements.
Depository Duopoly and Regulation
- India's depository market is a heavily regulated duopoly dominated by NSDL and CDSL.
- Regulatory constraints limit competition and revenue models are mostly fixed and stable.
CDSL vs NSDL Market Segments
- CDSL leads in retail investor accounts with 15.86 crore while NSDL has 4 crore.
- NSDL holds 87% by value, catering to big investors, showing contrasting market segments.