BSE to divest 2.5% stake in CDSL through OFS route

On Tuesday, shares of

stock closed 0.73% lower at Rs 1,002.50 on the NSE, while BSE was down by 0.98% to settle at Rs 493.50.

CDSL, which allows investors to deposit securities by opening an account in electronic form (dematerialised), gets its revenues from transaction charges, account maintenance charges and settlement charges paid by depository participants as well as annual fees, corporate action and e-voting charges paid by companies whose securities are admitted in the depository’s systems.

CDSL got listed on the NSE in 2017. Through the IPO, the BSE, which had 50.05% stake in CDSL, sold 26.05% of its holding to meet market regulator Sebi norms. Under Sebi regulations, a stock exchange cannot have more than 24% stake in a depository.

Along with the divestment decision, the board has also approved and released third quarter results of BSE. The company’s consolidated net profit fell 15% to Rs 52 crore in the three months ended December period, compared with Rs 61 crore in the corresponding period of last year.

Sequentially, net profit jumped 53% from Rs 34 crore reported in the September quarter.

Revenue from operations, meanwhile, rose 6% to Rs 203 crore in the quarter under review, as against Rs 192 crore in the same quarter of last year.The company’s total expenses too surged 24% year-on-year to Rs 188 crore as compared to Rs 152 crore in the year-ago period.

BSE provides an efficient and transparent market for trading in equity, currencies, debt instruments, derivatives, mutual funds.

BSE SME is India’s largest SME platform, which has listed over 250 companies and continues to grow at a steady pace. Meanwhile, BSE StAR MF is India’s largest online mutual fund platform which processes over 27 lakh transactions per month and adds almost 2 lakh new SIPs every month.