NSDL CEO Vijay Chandok Targets Demat Market Growth by Collaborating with New-Age Broking Firms. Despite being a market leader across key segments, NSDL trails behind CDSL in terms of demat account numbers, holding only around a 20% share. This gap highlights the growing dominance of retail participation through platforms aligned with newer broking firms.
With its IPO set to open on July 30, the National Securities Depository Limited (NSDL) is actively exploring strategies to strengthen ties with new-age broking firms. The move aims to boost its share in the demat account segment, where it currently lags behind rival CDSL despite maintaining leadership in other core areas.
NSDL CEO Vijay Chandok stated that the depository has begun engaging with market participants to identify actionable steps that can help enhance its demat account market share.
During the IPO announcement, NSDL CEO Vijay Chandok, in a conversation with Moneycontrol, underscored the depository’s proactive strategy of engaging with all market participants.
He emphasized the need to address stakeholder challenges through tailored solutions, believing that this collaborative approach will foster stronger relationships and fuel long-term business growth.
He stressed the importance of understanding stakeholder needs and offering effective solutions. This approach, he believes, will drive deeper engagement and business growth.
He highlighted ongoing efforts to understand stakeholder pain points and develop tailored solutions to improve engagement and service delivery. Chandok noted that these initiatives are already yielding results, with NSDL witnessing a noticeable improvement in its market share on a run-rate basis over the past six months.
This focus gains added significance as NSDL, despite being a market leader in several core segments where it competes with CDSL, holds a significantly lower share—around 20 percent—when it comes to the total number of demat accounts. Bridging this gap has become a strategic priority for the depository.
While NSDL holds only about 20 percent of the demat account market with 3.94 crore accounts compared to CDSL’s 15.9 crore, CEO Vijay Chandok pointed out that NSDL commands a much stronger position in terms of revenue, holding approximately 43 percent market share—highlighting the higher value of its account base.
NSDL CEO Vijay Chandok Targets Demat Market Growth by Collaborating, chandok explained that while NSDL holds only a 20 percent market share in terms of demat account numbers, it contributes nearly 43 percent to the industry’s overall revenue.
This disparity, he noted, stems from NSDL’s more evolved and higher-value customer base, which generates better revenue per account, reinforcing the depository’s strong financial position despite lower account volume.
Meanwhile, NSDL has set a price band of ₹760 to ₹800 per share for its upcoming IPO, which is entirely an offer for sale by existing shareholders such as NSE, IDBI Bank, and Union Bank. The NSDL IPO is scheduled to open for subscription on July 30 and will close on August 1, marking a key step in the depository’s market expansion plans.
This marks a significant milestone for the depository as it seeks to broaden investor participation. The listing is expected to enhance transparency and further solidify NSDL’s market presence.