CDSL Announces Uniform Tariff of Rs 3.50 per transaction From October 1: Know How Investors Will Benefit

Central Depository Services (India) Limited (CDSL) on Thursday informed the exchange in a filing that it would introduce a uniform tariff of Rs 3.50 per debit transaction effective October 1, 2024.  CDSL charges transaction costs when shares are sold from a demat account.

Central Depository Services (India) Limited (CDSL) is one of India's two major depositories, alongside NSDL (National Securities Depository Limited) which facilitates holding and trading of securities such as shares, bonds, and mutual funds in electronic form. .

This move by the depository, in accordance with Sebi's true-to-label circular, is expected to streamline and reduce transaction costs for over 13 crore investors who rely on CDSL for their depository needs.

In addition to the new tariff structure, CDSL also announced that certain discounts will remain applicable. Specifically, female demat account holders, either as sole or first holders, will continue to receive a discount of Rs 0.25 per debit transaction.

Similarly, a Rs 0.25 discount will also be applied to debit transactions related to Mutual Funds and Bond ISINs (International Securities Identification Numbers).

"Central Depository Services (India) Limited ("CDSL"), Asia's only listed depository and wealth custodian for over 13 crore investors is pleased to announce uniform tariff. CDSL announces uniform tariff of Rs 3.5/debit transaction" said the company.

How Will It Impact Investors?

Cost Reduction & Standardisation: The new standard rate of Rs 3.50 per debit transaction is a decrease from the previous range of Rs 3.75 to Rs 5.50. This reduction in transaction costs will benefit investors by lowering their overall expenses when executing transactions through CDSL, making trading more cost-effective. Further, it will standardise transaction costs, by eliminating differential costs to different customers.

Discounts: Female demat account holders, who are sole or first holders of the account, will continue to receive a Rs 0.25 discount per debit transaction. Similarly, a discount of Rs 0.25 per debit transaction for Mutual Funds and bond ISINs will also remain applicable.

Boost Market Activity: CDSL aims to boost trading activity by reducing transaction fees, which could encourage more investors to participate in the market and increase liquidity. This is especially important in a growing market where investors and traders are already facing high charges. However, starting from October 1, 2024, the cost of F&O trading will increase due to changes in the Securities Transaction Tax (STT). The STT on option sales will rise from 0.0625 per cent to 0.1 per cent of the premium. Additionally, customers have to pay various charges such as Demat Account Charges of Rs 20 + GST per sell transaction, Call and Trade Charges of Rs 50 per order, GST, Stamp duty, brokerage fees, turnover fees, and many others.

Investors in CDSL: Investors in CDSL stock didn't benefit from the announcement as the scrip ended the day at Rs 1,458.45 down Rs 10.35 or 0.70 per cent. The scrip has dipped 4.97 per cent in a month.