Why CDSL shares will be in focus today

Shares of Central Depository Services (India) Ltd (CDSL) will be in focus during Tuesday's trade after the Securities and Exchange Board of India (Sebi) imposed a Rs 1 crore penalty on the depository over a malware incident reported in November 2022.

In a regulatory filing, CDSL said, "We hereby inform that SEBI vide its letter dated July 20, 2026, concerning the malware incident that occurred on November 18, 2022, has imposed a penalty on Central Depository Services (India) Limited (CDSL/the Company) amounting to Rs 1,00,00,000/- (Rupees One Crore only) pursuant to the provisions of Section 15HB of the SEBI Act, 1992 and Section 19G of the Depositories Act, 1996."

The company further said, "The order contains observations with respect to certain cyber security and operational resilience related matters under the applicable regulatory framework."

CDSL clarified that the order is not expected to materially affect its business. "There is no material impact on financials, operation or other activities of the Company, except the payment of the proposed penalty amount," it added.

Separately, Nuvama Institutional Equities earlier said CDSL remains the market leader in the retail demat segment, with a 91 per cent share of incremental demat account additions in FY25, driven by strong partnerships with leading discount brokers. The domestic brokerage noted that new-to-market investors continue to dominate account openings, supporting KYC-related revenue.

"Annual issuer charges to balloon with a widespread increase in equity ownership. Mandatory dematerialisation of unlisted companies' to provide additional growth avenue. Insurance repository, CAS, eVoting and eAGM offers huge growth potential," Nuvama also stated.

"Our FY27E/28E APAT is reduced by 9.6/11.1 per cent yielding a TP (target price) of Rs 1,250 (earlier Rs 1,660) at FY28E EV/NOPLAT of 45x. Rating revised to 'HOLD'," it further said.

Meanwhile, CDSL shares settled 2.20 per cent lower at Rs 1,387 on Monday.