Central Depository Services (India) Limited [CDSL] was incorporated at Mumbai on December 12, 1997. CDSL commenced their depository business in 1999 with the objective of providing Convenient, Dependable and Secure depository services at affordable cost to all market participants.
CDSL is governed by the following laws and regulations:
- The Companies Act, 2013 and Rules
- SEBI Depositories Act, 1996
- SEBI (Depositories and Participants) Regulations 1996
- SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015
Central Depository Services Limited (CDSL) is a depository service that works for the Bombay Stock Exchange (BSE) and is promoted by the State Bank of India (SBI), Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, Axis Bank and the Union Bank of India.
The primary function of this depository is to hold securities either in certificated or un-certificated (dematerialized) form, and it helps enable the book-entry transfer of securities up to 500 shares in physical form. However, most traders have now adapted to the electronic format for trading in securities. CDSL’s primary focus is to provide safe, useful, reliable and secure depository services. CDSL began its operations from February 1999 onwards after obtaining prior clearance from market watchdog Securities and Exchange Board of India (SEBI).
A Depository Participant (DP) offers depository services to investors. According to SEBI-issued regulations, financial institutions, banks, custodians, and stockbrokers are eligible to act as DPs. The DP is a CDSL-authorized agent who serves as a link between the account holder or Beneficial Owner (BO), the issuing company, CDSL, the BO’s broker and the Stock Exchange