With the NSDL IPO finally announcing the dates for the issue launch on July 30, many might be revisiting a familiar debate – NSDL Vs CDSL: Which depository has the edge? After much anticipation and speculation around the NSDL IPO, the issue is now finally gearing up for its long-awaited stock market debut. With official dates out now, market chatter is growing louder about how it stacks up against its rival, CDSL.
As we get set to compare both depositories, it is important to understand that these two are central to how Indian investors hold and trade shares. However, their business models, financials, and investor bases are quite different.
So, before you decide whether to subscribe to the NSDL IPO, let’s take a look at the 5 key differences between India’s two depositories.
NSDL Vs CDSL: Initiation and early phase
While looking at the core, NSDL and CDSL were born out of India’s two major stock exchanges.
NSDL (National Securities Depository), India’s oldest and largest depository was set up in 1996 and is closely linked to the NSE (National Stock Exchange). Its shareholders include NSE (National Stock Exchange), IDBI Bank, State Bank of India (SBI), HDFC Bank, and SUUTI, all heavyweights of India’s financial system. The upcoming IPO is a pure Offer for Sale (OFS) by these existing shareholders.
CDSL (Central Depository Services), on the other hand, came up in 1999 under the umbrella of the BSE (Bombay Stock Exchange). Its shareholders include BSE, HDFC Bank, Standard Chartered, LIC, and others. CDSL was listed in 2017.
NSDL Vs CDSL: Core customer base- Institutions or retail
One of the main differences between the two lies here. NSDL is mostly used by large institutions such as mutual funds, insurance companies, and government-related bodies. As of June 30, 2025, NSDL continues to hold a dominant position in India’s depository landscape, managing over 4.04 crore active client accounts. A notable segment of this is that more than 4 lakh accounts are linked to investments in debt instruments. In terms of market penetration, the depository services more than 29,800 companies where over 75% of shares are held in dematerialised form. The total value of securities held under NSDL’s custody has now touched to Rs 510.91 lakh crore, or approximately US$5.97 trillion.
On the flip side, CDSL dominates the retail investor market. As of June 30, 2025, CDSL has over 15.86 crore investor accounts, excluding those that have been closed. In terms of assets under custody, CDSL holds more than 8.83 million distinct securities, with the total demat value amounting to Rs 7.92 lakh crore.
NSDL Vs CDSL: Financial performance
NSDL net profit rose by nearly 5% year-on-year to Rs 83.3 crore, up from Rs 79.5 crore in the same quarter last year. NSDL’s total income during the quarter also saw an almost 10% jump, reaching Rs 394 crore. For the full FY25, the depository clocked a 24.6% increase in annual profit, touching Rs 343 crore, while revenue for the year grew over 12% to Rs 1,535 crore.
Meanwhile, CDSL, the only listed depository so far faced a dip in its numbers for the March 2025 quarter. The revenue of the company slipped by 4.3% year-on-year to Rs 256 crore. Furthermore, the net profit fell sharply by 22.4% to Rs 100 crore, compared to Rs 129 crore in the same period last year. Operationally too, the numbers took a hit with the EBITDA dropped by 27% to Rs 107.35 crore, and the operating margin narrowed to 47.8%, down from 61.4%.
NSDL Vs CDSL: Market position
When it comes to market position, NSDL hold lead over CDSL on several key parameters, as per a CRISIL report. Whether it is the number of companies registered, active financial instruments, or the total value of assets under custody, NSDL continues to stay ahead. The depository also dominates in terms of settlement volume and overall demat market share during the first three quarters of FY25.
NSDL Vs CDSL: Business overview
NSDL was established in 1996. It was the first to introduce electronic holding of securities in India. This was one of the major shift from paper-based share certificates to digital records. Based in Mumbai, NSDL offers a platform to hold and transfer various financial instruments like shares, bonds, and mutual fund units. Its systems play a role in settlement processes and corporate actions, and it works through a wide network of depository participants (DPs) that connect investors, brokers, custodians, and companies across the country.
On the other hand, CDSL was launched in 1999. It is also headquartered in Mumbai and is the second major player in India’s depository space. It allows investors to maintain securities in dematerialised form and facilitates their transfer electronically. Moreover, it focuses more on retail participation and is responsible for handling functions like dividend payments and bonus share processing.