CDSL vs NSDL: Understanding the Growth Journey of India’s Two Depositories
India has two main depositories – CDSL (Central Depository Services Limited) and NSDL (National Securities Depository Limited). Both play a major role in the financial market by holding securities like shares in electronic form. Over the past 25 years, both these companies have grown, but something interesting has happened in recent years.
Growth of Demat accounts in India from 1999 to December 2024 for CDSL and NSDL (Source: Zerodha)
The Turning Point After 2020
As seen in the above image, until the year 2020, NSDL was in the leading position when it came to demat account growth. But after that, CDSL started catching up very fast. Today, CDSL has taken a clear lead over NSDL. This strong and fast growth by CDSL became very visible after 2020. Many people are now noticing how CDSL became the top choice among investors and brokers.
Comparison of Factors: CDSL vs NSDL
Why CDSL Grew Faster
One of the main reasons for CDSL’s strong growth is its focus on retail investors. Discount brokers like Zerodha, Groww, and Upstox – which have grown very fast in India – chose CDSL over NSDL. This happened because CDSL offered lower rates, easier onboarding, and simple APIs. Also, CDSL is backed by BSE (Bombay Stock Exchange), which gave it better reach and visibility.
CDSL stock price
The period starting in 2020 marked a significant growth phase for CDSL’s stock price.
CDSL share price Growth (March 2020 – December 2024)
The stock witnessed a strong and consistent upward trajectory, crossing ₹500 by mid-2021 and continuing to climb. In 2024, CDSL’s stock price experienced a significant surge, reaching a 52-week high of ₹1,989.80 on December 17, 2024. This reflects continued strong performance, potentially driven by sustained market activity and the company’s financial results.
NSDL’s Slow Adaptation
NSDL is backed by NSE (National Stock Exchange), but it could not match CDSL’s pace. While CDSL was targeting retail investors, NSDL was more focused on full-service brokers and institutional investors like big banks and FIIs. When the market started moving towards discount broking, NSDL was slow to adapt. Their systems did not change quickly, which may have caused them to fall behind.
What Lies Ahead for NSDL
NSDL is now planning to launch its IPO. This is expected to be a good opportunity, but many things will depend on the pricing and potential of the IPO. However, when we look at market share and growth numbers, there is no strong sign yet that NSDL can compete with CDSL in the near future. For example, CDSL has over 14 crore demat accounts, while NSDL has only around 3.8 crore.
What’s your take on the CDSL vs NSDL story? Are you team CDSL or team NSDL? Let us know in the comments! Thanks for reading — and if you found this helpful, don’t forget to share it with your friends!
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