CDSL

Central Depository Services Limited (CDSL) is a securities depository in India established under the Depositories Act, 1996 and regulated by the Securities and Exchange Board of India (SEBI). It is one of the two central depositories in the country, the other being National Securities Depository Limited (NSDL).

CDSL provides dematerialization and rematerialization of securities, safekeeping, and settlement services for trades carried out on Indian stock exchanges. It maintains dematerialized accounts for investors and issuers and enables electronic transfer of ownership. The depository also offers facilities for pledge and collateral management and handles corporate actions processing such as dividends, stock splits, and rights issues.

CDSL operates through a network of depository participants (DPs), including banks, financial institutions, brokers, and other entities, who interact with individual investors and corporate customers. It uses a computerized depository system to support the electronic holding and transfer of securities, linking with the clearing and settlement processes of the exchanges to complete trades.

Regulation and governance are overseen by SEBI under the Depositories Act. CDSL is governed by a board of directors and operates within regulatory frameworks designed to enhance settlement efficiency, reduce paper-based processes, mitigate settlement risk, and protect investor interests.

CDSL plays a central role in India’s shift toward a fully dematerialized securities market. By enabling paperless ownership and faster settlement, it supports transparency, accessibility, and efficiency for investors, issuers, brokers, and other market participants.