How did CDSL manage to scale the 5 crore demat account mark in such a short time?

Let me clarify that CDSL has just crossed the 6 crore demat account mark. How did CDSL master the formula. More so considering that NDSL still has about 2.5 crore accounts, although the value of custody is much higher in the case of NSDL. However, let me come back to the CDSL story for now.

CDSL demat accounts added the last 1 crore demat accounts in just 3 months and the last 2 crore demat accounts were added in just the just 6 months. Let me take it a little wider. CDSL demat accounts were 2 crore in March-20 and grew 200% in just 2 years. In short CDSL added thrice the demat accounts in last 2 years compared to 21 years since inception.

Two factors appear to have helped CDSL in this journey. CDSL has become a Depository of choice for new age brokers who prefer CDSL’s low cost structure and flexibility. Most millennials and young investors gravitated towards CDSL as a natural choice. Also, CDSL has been aggressive in targeting Tier-2 and Tier-3 cities and smaller towns and villages that are now the big contributors.