NSDL vs CDSL: What’s the Difference?
This blog post explores the factual differences between two central securities depositories in India NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). We cover their backgrounds, work portfolios, revenue types, profit margins, and their publicly disclosed future plans or prospectus. All information is sourced from official reports and credible analysis.
- Background and Ownership
- Work Portfolio and Services
- Financials: Revenue Types & Margins
- Future Prospectus (Plans and Disclosures)
1. Background and Ownership
NSDL was set up in 1996 as India’s first electronic securities depository. It is promoted by institutions such as the National Stock Exchange (~24 %) and IDBI Bank (~26 %) along with SBI, HDFC and others. NSDL is currently unlisted and plans an IPO. ([Financial Express](https://www.financialexpress.com/market/ipo-news-nsdl-ipo-date-out-5-key-differences-between-nsdl-and-cdsl-every-investor-should-know-3925604/))
CDSL was incorporated in 1999 with BSE as promoter. It is publicly listed since 2017, with shareholders including BSE, HDFC Bank, Standard Chartered, LIC and others. ([Wikipedia – CDSL](https://en.wikipedia.org/wiki/Central_Depository_Services_Limited))
2. Work Portfolio and Services
Both depositories offer highly similar core services, governed under SEBI’s Depositories Act and regulations. The differences reflect promoter linkages and client focus.
Common services (both NSDL & CDSL):
- Dematerialisation and rematerialisation of securities
- Maintenance of demat accounts and account statements
- Settlement and share transfers (exchange & off-market)
- Handling corporate actions (dividends, bonus, mergers)
- Nomination and transmission services
See more on Groww and India Infoline.
NSDL’s distinctive services:
- Institutional custody and settlement for mutual funds, FIIs, insurance firms, debt instruments. ([LinkedIn Article](https://www.linkedin.com/pulse/comparative-overview-cdsl-vs-nsdl-unlistedzone-iddgf))
- Government / e-governance projects via NSDL e-Gov: PAN issuance, National Pension Scheme (NPS), Central KYC Registry.
- Ancillary services like NSDL Payments Bank and NDML (NSDL Database Management Ltd).
CDSL’s distinctive services:
- Retail-focused innovations: e-DIS, e-voting, API interfaces, online e-KYC and central KYC (CVL).
- Pure depository business model focused on retail transactions. ([INDmoney Blog](https://www.indmoney.com/blog/stocks/cdsl-vs-nsdl))
3. Financials: Revenue Types & Profit Margins
This section is based on publicly available data for FY2024 and early FY2025 results.
Revenue and Profit (recent performance)
| Company | Revenue | Profit After Tax (PAT) | Profit Margin |
|---|---|---|---|
| NSDL | ₹1,535 Cr (FY25 projected) | ₹343 Cr | ~22–24% |
| CDSL | ₹1,082 Cr | ₹526 Cr | ~48–49% |
More on NSDL IPO filing from [Planify](https://www.planify.in/article/nsdl-ipo-unlisted-share-review/), and [CDSL’s Annual Reports](https://www.cdslindia.com/About/CDSL-Publications.aspx).
Revenue Sources
- NSDL: Institutional custody, demat settlement, PAN/NPS/KYC services, e-Gov, and Payments Bank. ([NDML Report](https://www.ndml.in/pdfs/NDML-Annual-Report-2023-24.pdf))
- CDSL: Retail account fees, IPO and corporate action charges, e-KYC verification, demat transactions. ([Stockify blog](https://stockify.net.in/blog/difference-between-nsdl-and-cdsl/))
4. Future Prospectus (Plans and Disclosures)
- NSDL IPO: Upcoming IPO in FY25 with public OFS by NSE, IDBI, SBI, and others. ([SEBI Draft Prospectus](https://www.sebi.gov.in/filings/public-issues/may-2024/draft-red-herring-prospectus-of-national-securities-depository-limited_83362.html))
- CDSL future: Expanding fintech integrations, KYC APIs, and e-services as disclosed in the FY23 Annual Report.
- Unified Investor Access: SEBI’s consolidated platform combining NSDL’s SPEED-e and CDSL’s MyEasi is now live. ([SEBI Release](https://www.sebi.gov.in/media/press-releases/may-2023/sebi-launches-consolidated-portal-for-investors_70757.html))
5. Summary: Side-by-Side Comparison
| Feature | NSDL | CDSL |
|---|---|---|
| Founded | 1996 | 1999 |
| Ownership | Institutional (NSE, IDBI, SBI, etc.) | Public (BSE + retail shareholders) |
| Client Focus | Institutional, government | Retail, fintech |
| Annual Revenue | ₹1,535 Cr (FY25 est.) | ₹1,082 Cr |
| Profit After Tax | ₹343 Cr | ₹526 Cr |
| Net Margin | ~22–24% | ~48–49% |
| Unique Offerings | PAN/NPS, NDML, e-Gov | e-KYC, MyEasi, CVL |
| Future Plans | IPO in 2025 | Expanding retail interfaces |
Conclusion
NSDL and CDSL both play critical roles in India’s financial infrastructure. NSDL serves major institutions and offers broader services via e-Governance and Payments Bank. CDSL focuses on the booming retail investor space with higher transaction volumes and digital interfaces.
Each has a unique path, shaped by their history, ownership, and client base. With NSDL’s IPO on the way and CDSL’s innovations in full swing, investors and analysts will continue to monitor their evolution in the public domain.
Ankit Joshi
