Refused to commit on ipo vs corporate action.

So first, I wanted to understand on the online data charges thing. I think one of the competitors also made a remark which implied that the number of fetches a mutual fund would require to do from a KRA would reduce. I did not really understand the full context and what's happening over there. So, I wanted to understand what's the discussion and why if the fetches would reduce from KRA agencies? Second, on the annual issuer charges, I wanted to understand the split between onetime charges. So, I believe that you do charge a onetime sort of processing fee when you admit unlisted companies. So how much is that? And what is the onetime charges that you have charged in this quarter? And also the listed companies, which are getting sort of listed in this year. During this year, we are seeing a lot of listings happening. I wanted to understand in what form I understand that how the revenue will build up for these companies in FY '27. But I wanted to understand in FY '26, how do we build them?

So, on the first question before I ask Sunil to really reply. See, any change will require some kind of a circular from SEBI. And I think it would be most prudent to wait for the SEBI circular to come in before really assessing the impact on whether the fetch will reduce or not reduce, et cetera. [Sunil Alvares]: See, today also, if you see that the AMCs fetch a particular PAN only once during the lifetime of the investors. So, if you are saying they are going to reduce their PAN fetch, you're saying they will not fetch any PAN at all. I don't think that would be possible. Secondly, if you see the RTA circular, the AMCs or the RTAs have to maintain a Chinese wall between the RTA operations of each AMCs, which they are handling. So that effectively means the RTAs cannot share the KYC amongst themselves, unless somebody is violating the guidelines. [Girish Amesara]: So, in terms of unlisted issuer charges, in this quarter, we have a value of INR3.53 crores. And in terms of application processing, we have a number of INR5.39 crores. And this is based on 3,593 companies admitted during this quarter. With respect to the listed securities, which upon the IPO, your question was how it will span out on issuer charges. So, if the investor holds the security throughout the year, then based on the ISIN being there in that particular demat account, the annual issuer charge will be decided. Now it's an average of full 1 year. So, depending upon the holding of that particular security in the ISIN, the necessary issuer charge would be calculated. [Follow-up on FY26]: In FY '26, again, the same formula applies, okay? If there is any holding being in that particular ISIN and demat account, then it will be counted in the issuer income value. In addition to that, on the corporate action charge, when a company completes an IPO and securities are credited in the investor account, we earn the corporate action charge in the first year and from second year onwards the issuer starts paying annual issuer charge. [Confirmation]: INR10 per credit.

Firstly, sir, congratulations on a good set of numbers. A few things that I wanted to understand. First, a clarification one. In annual issuer charges, you mentioned two revenues. One was INR3.53 crores, which you said has come from unlisted and INR5.39 crores, which was the processing. So, this processing will include only unlisted, or this is unlisted and listed both? And within the transaction charges, how much would be the pledge income? Could you also share the breakup for eCAS, e-voting and e-AGM? And there has been some little restatement in your KYC income, which has been restated upwards for the previous quarters also. Could you explain what reclassification have been done? And our market share on incremental demat account additions has been coming down for the last two, three quarters. If you see, it peaked somewhere around 3Q FY '25, when we had 93% market share. And this number in this quarter has come down to 82%. So, any particular reason that you can highlight where we've been losing market share?

Unlisted [for the processing fee]. So, the total unlisted is this INR3.53 crores plus INR5.39 crores. So, pledge income is INR5.09 crores in this quarter. INR5.05 crores [in 1Q]. The other income is at INR59 crores, which consists of consolidated account statement revenue of INR12 crores, e-voting income of INR20 crores, investment income of INR21.46 crores and other operating revenue of INR6 crores. [Swaroop Gothi]: So earlier in our presentation, we were providing the only online data charges on CDSL Ventures Limited. Now we have included other KRA income as well in this category, like KYC income, esign income and other. [Sunil Alvares]: So basically, in the CDSL Ventures, we handle multiple projects apart from the KRA. So, one is the online data charges. The other income pertains to the other product i,e., projects what we are doing like eSign, eKYC/CKYC, GSP services and all the other products. [Girish]: So, it's an improvement. What we believe is that we should be constantly improving ourselves. And accordingly, we have tried to present all KRA related revenue. Rather than including other non-significant part in other income, we have started including all KRA related income into one portion. [Nehal Vora on market share]: We've not been losing market. See, again, you have to look at the absolute numbers. Percentage is basically a relative number. So, what is the total accounts which have been opened?, you have to see the absolute numbers which are getting opened between quarter-to-quarter. It has steadily been on an increase. Quarter-to-quarter is kind of a snapshot, but these are all a culmination of various market conditions, the external environment, etcetera. On the first quarter, we had opened 56 lakh demat accounts. Quarter 2, it has been 66 lakh demat account.

Sir, my question is related to your tax rate. So, for the first half, it looks to be around 27.4% for the consol tax rate. So, is it fair to assume that in second half, your tax rate will be lower so that in full year, it will be around 25-ish? So that's my first question. And second question with respect to data keeping is that if you can quantify your impairment cost in the current quarter, that will be useful? Last quarter, you mentioned that your number of folios were INR22.76 crores. So, any incremental growth in that number in the current quarter compared to the previous quarter? And insurance repository: revenue growth outlook and how to scale this business, what kind of market share, what kind of tie-ups you have made?

Sure. So Sanketh, the tax rate of CDSL, we are at 25.17%, consisting of 22% base rate and then surcharge and education cess. Having said that, when we look quarter-on-quarter, our average tax rate would range from 22% to 25%, depending upon various kind of impact of the deferred tax assets or deferred tax liability. And with respect to data set, the debtors' provision is at INR5.07 crores. So Sanketh, on the folio count that we had provided in the first quarter, it was INR3,326 lakhs and what the number that you said, it was of previous year. And normally, when we annually issue our invoicing in the first quarter, that number remains constant throughout the year. [Latesh Shetty]: With reference to the current half yearly closing, we have signed up two new customers. LIC integration is expected to go live in November. So we expect some numbers to increase from there. As far as the numbers of insurance accounts opening is concerned, we are actually reflecting the industry numbers. although we do not count the premium numbers. But if you look at the number of policies issued from the IRDA results, there has been actually a decrease in the number of policies opened. But still, we have shown a 30% growth vis-a-vis last year. And we expect that the online portal opening, which we have done, should contribute more. So just to give you a perspective, there are three channels from where the business comes. One is from the insurance companies. Second is directly from the customers. And the third channel is the broking channel. We have opened the second channel, first channel was always there. We have opened the online portal 6 months back, and we have seen a steady trickling of numbers from there. The third broking channel is which we are working on, and we expect that the future growth should come from the broking channel. [Nehal on life vs general]: No, I don't think so. That will have to be seen as to how the industry evolves. And it depends on what is the regulatory formulation also, which happens. Again, drawing the same analogy that on the road, we prepare roads. Now whether there are scooters or trucks or cars, that is really irrespective.

So, if I just look at the revenue booked under online data charges, traditionally, this has tracked the number of new demat accounts. But this quarter, the number of new demat accounts has grown about 14-odd percent, but the revenue booked under this line item is up about 30%. So could you just provide some color on exactly what's going on and what has changed qualitatively under the hood? Just a follow-up. Wouldn't the pledge income and, say, transaction-related income be booked under different lines within the revenue accounts rather than online data charges?

So, see, when the accounts are opened, that shows the number of new people coming into the fold. But there could be multiple transactions which happen, which includes pledge transactions. It includes your actual buy and sell transactions. And each one is recorded as a revenue. So, it depends on the market activity in that quarter, which determines what the total income from that market-driven activity constitutes. There may not be a 1:1 correlation between account openings and the income, which is earned out there. [Girish Amesara]: Transaction charge and pledge income is depositories income not KRA income. So, it is not recorded under the KRA income. [Nehal]: similarly, like is in the core Depository CDSL and CVL also, it constitutes various other activities like fetch and etcetera. [Sunil Alvares]: You also have to understand that it's only not demat accounts which are getting opened by way of KYC, there are mutual fund investors also coming in. So effectively, the KYC, what you see the numbers, what you see is getting divided amongst demat accounts and mutual funds. That is investors investing only in mutual funds. [On fetches]: See, we do not actually get into those things, we only track more of the overall fetches which are happening, okay, compared to or whether the new investors are fetching. What we normally see as a trend is the new investors which come in, the fetches take at least about 6 to 1 year to actually start coming. [Confirmation]: Yes, quarter-on-quarter, yes.

Sir, just one question on the transaction charge. Some brokers on the website show per transaction, while some show per ISIN debit. So, can you clarify whether if there is one ISIN debit at the end of the day, the customer is charged only once, or there can be multiple charges also possible during the day? Follow-up: But as a depository, you get charged only once when the ISIN gets debited at the end of the day?

See, again, you need to understand that depository charges the depository participants. What the DP/ broker, broker is a different activity, and depository participant, different activity. That will depend upon the arrangement or the agreement which is between the ultimate customer and the intermediary. Both these are put out on the public domain. So, the market at large knows that what the depository is charging, what the brokers are charging. And it is up to each customer or beneficial owner to choose which DP. And there could be various options. DP A may charge different from DP B or DP C or DPD, and it is up to the investor to choose which DP it would like to choose for its own self. [On end-of-day vs settlement]: Not at the end of the day. Each transaction i.e. each settlement. [Sunil Alvares]: So effectively, every time there is a debit, there is a charge into the investor.