CDSL Announces New Uniform Tariff for Investors Starting October 2024
Central Depository Services (India) Limited (CDSL) has announced a new uniform tariff of Rs 3.50 per debit transaction, effective from October 1, 2024. This change aims to streamline costs for over 13 crore investors who rely on CDSL for their depository needs.
In addition to the new tariff structure, CDSL will continue to offer certain discounts. Female demat account holders, either as sole or first holders, will receive a discount of Rs 0.25 per debit transaction. Similarly, a Rs 0.25 discount will be applied to debit transactions related to Mutual Fund and Bond ISINs (International Securities Identification Numbers).
CDSL, established in 1999, is one of India’s two major depositories, alongside NSDL (National Securities Depository Limited). It facilitates the holding and trading of securities such as shares, bonds, and mutual funds in electronic form. Its primary role is to safeguard investors’ holdings by providing dematerialization services, which allow physical securities to be converted into digital form.
Doubts Revealed
CDSL -: CDSL stands for Central Depository Services (India) Limited. It is a company that helps people keep and trade their shares and other financial assets in electronic form, instead of paper.
Uniform Tariff -: A uniform tariff means a single, standard fee that everyone has to pay. In this case, it is Rs 3.50 for each transaction.
Debit Transaction -: A debit transaction is when money is taken out of your account. Here, it means when you sell shares or other financial assets.
13 crore -: 13 crore means 130 million. It is a way to count a large number of people, like the investors mentioned here.
Demat Account -: A demat account is like a bank account, but instead of money, it holds your shares and other financial assets in electronic form.
Mutual Fund -: A mutual fund is a type of investment where many people pool their money together to buy a variety of stocks, bonds, or other assets.
Bond ISINs -: ISIN stands for International Securities Identification Number. It is a unique code used to identify bonds and other securities.
Depository -: A depository is a place where financial assets like shares and bonds are kept in electronic form. CDSL is one of the two main depositories in India.