The National Securities Depository Limited (NSDL) is considering ways to increase the number of more accounts with new -age broking firms to increase its market share in terms of demat accounts. In case of the number of accounts it is behind its competitive CDSL. The initial public issue (IPO) of NSDL will open for subscription on 30 July. According to NSDL CEO Vijay Chandok, the depository has started efforts to connect more with all the market participants to explain what more can they do to increase their market share as a depository.
Speaking to Moneycontrol on the occasion of the announcement of the company’s IPO, Chandok said, “Under our view, we are constantly trying to join people. There is a good way to get an opportunity to do more business. “
He further said that you can see that in the last six months, our market share has improved on the basis of run rate, so I think this is the effort we are trying.
This is important because NSDL has the status of leader in the market in most areas, it competes with CDSL, but if the number of demat accounts is taken into consideration, its market share is low that is about 20 percent.
NSDL has about 3.94 crore demat accounts. While CDSL has 15.9 crore demat accounts. However, Chandok emphasizes the fact that NSDL has a market share of about 20 percent in the demat region, but its stake in the case is about 43 percent.
“Our market share in demat accounts … is 20 percent in the industry. However, our revenue stake in the industry is about 43 percent. In the Demat area, we have more developed customers, from which we get better revenue per account. So with 20 percent market share, even with 20 percent market share, our stake in total revenue is about 43 percent.”
Meanwhile, the depository has fixed a price band of Rs 760 to Rs 800 for its IPO. These IPOs offer sales by existing shareholders including NSE, IDBI Bank and Union Bank. This IPO will open for subscription on 30 July and will close on 1 August.