CDSL Plans To File Initial Papers For IPO Soon: Report

New Delhi: Central Depository Services (India) (CDSL), promoted by BSE, is likely to soon file draft papers with market regulator Sebi for its initial public offering.

It will become the first depository to get listed on the stock exchange once the IPO plan goes through.

CDSL allows investors to deposit securities by opening an account.

The securities such as shares, debentures, bonds of investors are held in electronic form (dematerialised) at the depositories. It has a little over 1.17 crore investor accounts.

According to sources, CDSL will submit the draft red herring prospectus (DRHP) for the IPO "very soon".

The initial public offer is likely to see existing shareholders, including BSE, offloading shares through the offer-for-sale (OFS) route.

BSE, which holds 50.05 per cent stake in CDSL, has to pare its stake in the depository to comply with Sebi norms.

Under the regulations, a stock exchange cannot have more than 24 per cent in a depository.

Earlier this year, the exchange had sold 4.15 per cent stake in CDSL for a little over Rs 34 crore in order to comply with the Sebi guidelines.

BSE, Asia's oldest bourse, is also in the process of launching its initial share sale.

Apart from BSE, other shareholders in CDSL are Bank of India, Bank of Baroda, State Bank of India, HDFC Bank, Canara Bank, Standard Chartered Bank, Union Bank of India, Bank of Maharashtra, Life Insurance Corporation of India and Calcutta Stock Exchange.

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