UTI to pick 10 pc in CDSL

CDSL, having an ambitious plan of acquiring 80 per cent market turnover by March 2001, intends to raise its equity from Rs 101 crore to Rs 150 crore through divestment of BSE’s stake and issue of fresh equity mainly for part-financing its expansion.

"This (hike in equity base) is subject to approval by CDSL board scheduled to meet on September 9," he said. Currently, National Securities Depository Ltd (NSDL) floated by NSE and financial institutions handles a major portion of the depositories business.

But Damani said CDSL, having 0.005 per cent transfer charges as against 0.02 for NSDL, is fast gaining business. This is evident from the interest shown by banks and regional stock exchanges in picking up stakes and availing the CDSL facilities, he said.

"Apart from UTI, Calcutta Stock Exchange (CSE) and Delhi Stock Exchange (DSE) have passed resolutions for investing Rs one crore each to take stakes in CDSL," he said.

Currently, promoter BSE holds 40 per cent stake in CDSL, while sponsors State Bank of India (SBI), Bank of India (BoI) and Bank of Baroda (BoB) have 10 per cent share each and HDFC Bank has 7.5 per cent share in the depository.

BSE would also divest its stake to offer Standard Chartered Bank and Global Trust Bank 7.5 per cent stake each and another five per cent to Centurion Bank, Damani said.

Also in the list of investors keen on taking stake in the country’s second largest depository are Canara Bank, ICICI Bank, Bank of Maharashtra, Jammu & Kashmir Bank and Union Bank of India, Damani said.

At present, shares of over 1,360 companies are traded through BSE’s depository. CDSL, with 81 depository participants (DPs), settled shares worth of Rs 11,286 crore in August last.