Latest news with #SEBI-mandated
Economic Times
19-07-2025
- Business
- Economic Times
NSDL nears listing deadline: How does the institutional giant measure up to CDSL's retail surge?
THE ECONOMIC TIMES NSDL is expected to start taking investor orders as early as next week, with the issue size scaled back to 5.01 crore shares from an earlier proposed 5.73 crore. As India's largest depository heads for a SEBI-mandated IPO by July 31, investor focus sharpens on how NSDL compares to its listed peer CDSL, whose stock has surged 44% over the past Securities Depository Ltd (NSDL), the country's oldest and largest depository by value of assets under custody, is nearing its much-anticipated stock market debut, with Securities and Exchange Board of India (Sebi) mandating a listing by the end of while investors await clarity on the final date, comparisons with its nimbler rival Central Depository Services Ltd (CDSL) have come into sharp focus, especially after NSDL's unlisted shares corrected nearly 20% from their 52-week highs, even as CDSL's listed stock rallied 45% over the past 12 months. According to Bloomberg, NSDL is expected to start taking investor orders as early as next week, with the issue size scaled back to 5.01 crore shares from an earlier proposed 5.73 crore. The IPO, which may raise up to $500 million, will be an entirely offer-for-sale (OFS) issue from shareholders including IDBI Bank, the National Stock Exchange of India, and State Bank of India. NSDL will not receive any proceeds from the IPO. 'The NSDL–CDSL divergence is a textbook case of differing business models and market positioning,' said Bhavik Joshi, Business Head at INVasset PMS. 'NSDL's core strength lies in its institutional dominance — with over 89% of India's demat asset value under custody, and deep integration with mutual funds, insurance firms, and government securities.' Joshi said, 'It also holds a strong presence in the unlisted and pre-IPO ecosystem, which is poised for regulatory tailwinds as private market infrastructure evolves.'CDSL, by contrast, has emerged as a retail powerhouse, especially during the recent bull run. 'CDSL has emerged as the poster child for India's retail financialization. Its nimble tech stack, competitive pricing, and rapid onboarding have led to a dominant share of retail demat accounts,' said Joshi. 'Investors must distinguish between depth and breadth… CDSL, though more retail-centric and cyclical, may offer stronger operating leverage in upcycles.' NSDL leads across several institutional metrics. As of December 31, 2024, it had 64,535 issuers, more than double CDSL's 31,557. It also had 63,542 DP Service Centres (DPSCs), compared to 17,883 for CDSL. NSDL continues to dominate in the unlisted space as well, with 53,169 unlisted companies on its platform, versus 21,295 for contrast, CDSL's strength lies in the number of demat accounts held, 14.65 crore as of December 2024, far outpacing NSDL's 3.88 crore. While CDSL holds more accounts, NSDL's custody value per account is significantly higher, averaging Rs 1.25 crore per account versus Rs 5 lakh for the unlisted market, NSDL shares have fallen from Rs 1,275 to around Rs 1,025 in recent weeks. 'The correction in NSDL's unlisted share price ahead of its IPO reflects recalibration rather than structural weakness,' said Joshi. 'It is not uncommon for pre-IPO valuations to adjust in response to listed peer benchmarks, changing market risk appetite, and revised growth expectations.''In NSDL's case, the re-pricing seems driven by three forces: softening investor expectations post-listing euphoria in CDSL, macro-level de-rating in tech-led financial infrastructure names, and the absence of a fresh primary capital infusion to signal near-term growth acceleration,' Joshi he believes the long-term outlook remains solid. 'If the IPO is priced conservatively relative to CDSL's current valuations, the drawdown may serve to reset expectations — not undermine fundamentals.'The IPO being entirely an OFS has also prompted questions about promoter intent. 'An IPO structured entirely as an Offer for Sale (OFS) naturally raises questions about promoter conviction and reinvestment intent,' Joshi said. 'While this doesn't inherently signal a lack of faith, it does alter the narrative.''NSDL is a cash-generating business with a long runway of regulatory and ecosystem-driven tailwinds. Its growth does not necessarily hinge on capital infusion,' he noted. However, in the absence of new capital, 'the spotlight shifts to governance quality, operating leverage, and dividend policy.' NSDL has already informed shareholders that all pre-IPO equity shares will be locked in starting July 18, in line with Sebi norms. MUFG Intime India has been appointed as registrar, and ICICI Securities, Axis Capital, HSBC Holdings, and IDBI Capital are lead managers to the issue. CDSL's meteoric rise has raised concerns about whether valuations have overshot fundamentals. 'CDSL's rally over the past year mirrors the broader surge in retail market activity, a secular rise in demat account openings, and expanding use-cases for depositories across asset classes,' said he cautioned, 'A large part of CDSL's revenues remains market-linked — from corporate actions, transactions, and float income — all of which are susceptible to market cycles.''If the current rally is pricing in uninterrupted volume growth, record IPO flows, and a persistently bullish retail environment, then there is risk of overextension,' he said. Still, long-term structural drivers remain intact, including SEBI's push for dematerialisation and broader digital beyond the listing, the medium-term growth opportunity for both depositories lies in expanding into new asset classes.'The next phase of growth for depositories lies beyond equity markets,' said Joshi. 'Medium-term opportunities include dematerialisation of insurance policies, educational certificates, sovereign gold bonds, and even tokenised assets.'CDSL is likely to benefit more from the ongoing expansion of the retail investor base, thanks to its quicker onboarding processes, wider integration with partners, and flexible tech architecture. NSDL, on the other hand, is better positioned to lead on the institutional front, particularly in managing complex asset classes and large-scale recordkeeping, owing to its long-standing relationships and institutional expertise, according to Joshi. Also read | NSDL IPO set to open soon: Unlisted share price down 20% from peak. Here are 7 things to watch out for 'While CDSL has the retail velocity and brand recall, NSDL brings depth, trust, and compliance strength,' Joshi said. 'The growth runway is large enough for both to scale — but the market will reward whoever leads the transition from compliance infrastructure to financial infrastructure utility.' (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
19-07-2025
- Business
- Time of India
NSDL nears listing deadline: How does the institutional giant measure up to CDSL's retail surge?
As India's largest depository heads for a SEBI-mandated IPO by July 31, investor focus sharpens on how NSDL compares to its listed peer CDSL, whose stock has surged 44% over the past year. National Securities Depository Ltd (NSDL), the country's oldest and largest depository by value of assets under custody, is nearing its much-anticipated stock market debut, with Securities and Exchange Board of India (Sebi) mandating a listing by the end of July. Explore courses from Top Institutes in Select a Course Category Design Thinking Healthcare Degree MCA Data Analytics Others Product Management Artificial Intelligence healthcare Leadership Data Science Project Management CXO others PGDM Management Data Science Operations Management Finance Cybersecurity Public Policy MBA Technology Digital Marketing Skills you'll gain: Duration: 22 Weeks IIM Indore CERT-IIMI DTAI Async India Starts on undefined Get Details But while investors await clarity on the final date, comparisons with its nimbler rival Central Depository Services Ltd (CDSL) have come into sharp focus, especially after NSDL's unlisted shares corrected nearly 20% from their 52-week highs, even as CDSL's listed stock rallied 45% over the past 12 months. According to Bloomberg, NSDL is expected to start taking investor orders as early as next week, with the issue size scaled back to 5.01 crore shares from an earlier proposed 5.73 crore. The IPO, which may raise up to $500 million, will be an entirely offer-for-sale (OFS) issue from shareholders including IDBI Bank , the National Stock Exchange of India, and State Bank of India . NSDL will not receive any proceeds from the IPO. Institutional depth vs retail velocity 'The NSDL–CDSL divergence is a textbook case of differing business models and market positioning,' said Bhavik Joshi, Business Head at INVasset PMS. 'NSDL's core strength lies in its institutional dominance — with over 89% of India's demat asset value under custody, and deep integration with mutual funds, insurance firms, and government securities.' Joshi said, 'It also holds a strong presence in the unlisted and pre-IPO ecosystem, which is poised for regulatory tailwinds as private market infrastructure evolves.' CDSL, by contrast, has emerged as a retail powerhouse, especially during the recent bull run. 'CDSL has emerged as the poster child for India's retail financialization. Its nimble tech stack, competitive pricing, and rapid onboarding have led to a dominant share of retail demat accounts,' said Joshi. 'Investors must distinguish between depth and breadth… CDSL, though more retail-centric and cyclical, may offer stronger operating leverage in upcycles.' NSDL leads in value, CDSL in volume NSDL leads across several institutional metrics. As of December 31, 2024, it had 64,535 issuers, more than double CDSL's 31,557. It also had 63,542 DP Service Centres (DPSCs), compared to 17,883 for CDSL. NSDL continues to dominate in the unlisted space as well, with 53,169 unlisted companies on its platform, versus 21,295 for CDSL. In contrast, CDSL's strength lies in the number of demat accounts held, 14.65 crore as of December 2024, far outpacing NSDL's 3.88 crore. While CDSL holds more accounts, NSDL's custody value per account is significantly higher, averaging Rs 1.25 crore per account versus Rs 5 lakh for CDSL. Unlisted market cools ahead of listing In the unlisted market, NSDL shares have fallen from Rs 1,275 to around Rs 1,025 in recent weeks. 'The correction in NSDL's unlisted share price ahead of its IPO reflects recalibration rather than structural weakness,' said Joshi. 'It is not uncommon for pre-IPO valuations to adjust in response to listed peer benchmarks, changing market risk appetite, and revised growth expectations.' 'In NSDL's case, the re-pricing seems driven by three forces: softening investor expectations post-listing euphoria in CDSL, macro-level de-rating in tech-led financial infrastructure names, and the absence of a fresh primary capital infusion to signal near-term growth acceleration,' Joshi explained. Still, he believes the long-term outlook remains solid. 'If the IPO is priced conservatively relative to CDSL's current valuations, the drawdown may serve to reset expectations — not undermine fundamentals.' Entirely an OFS: no fresh capital The IPO being entirely an OFS has also prompted questions about promoter intent. 'An IPO structured entirely as an Offer for Sale (OFS) naturally raises questions about promoter conviction and reinvestment intent,' Joshi said. 'While this doesn't inherently signal a lack of faith, it does alter the narrative.' 'NSDL is a cash-generating business with a long runway of regulatory and ecosystem-driven tailwinds. Its growth does not necessarily hinge on capital infusion,' he noted. However, in the absence of new capital, 'the spotlight shifts to governance quality, operating leverage, and dividend policy.' NSDL has already informed shareholders that all pre-IPO equity shares will be locked in starting July 18, in line with Sebi norms. MUFG Intime India has been appointed as registrar, and ICICI Securities, Axis Capital, HSBC Holdings , and IDBI Capital are lead managers to the issue. CDSL rally: overdone or justified? CDSL's meteoric rise has raised concerns about whether valuations have overshot fundamentals. 'CDSL's rally over the past year mirrors the broader surge in retail market activity, a secular rise in demat account openings, and expanding use-cases for depositories across asset classes,' said Joshi. But he cautioned, 'A large part of CDSL's revenues remains market-linked — from corporate actions, transactions, and float income — all of which are susceptible to market cycles.' 'If the current rally is pricing in uninterrupted volume growth, record IPO flows, and a persistently bullish retail environment, then there is risk of overextension,' he said. Still, long-term structural drivers remain intact, including SEBI's push for dematerialisation and broader digital adoption. Who's better positioned for what comes next? Looking beyond the listing, the medium-term growth opportunity for both depositories lies in expanding into new asset classes. 'The next phase of growth for depositories lies beyond equity markets,' said Joshi. 'Medium-term opportunities include dematerialisation of insurance policies, educational certificates, sovereign gold bonds, and even tokenised assets.' CDSL is likely to benefit more from the ongoing expansion of the retail investor base, thanks to its quicker onboarding processes, wider integration with partners, and flexible tech architecture. NSDL, on the other hand, is better positioned to lead on the institutional front, particularly in managing complex asset classes and large-scale recordkeeping, owing to its long-standing relationships and institutional expertise, according to Joshi. Also read | NSDL IPO set to open soon: Unlisted share price down 20% from peak. Here are 7 things to watch out for 'While CDSL has the retail velocity and brand recall, NSDL brings depth, trust, and compliance strength,' Joshi said. 'The growth runway is large enough for both to scale — but the market will reward whoever leads the transition from compliance infrastructure to financial infrastructure utility.' ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
27-06-2025
- Business
- Time of India
JSW Paints to buy Akzo Nobel India for Rs 8,986 crore
Mumbai: JSW Paints has agreed to acquire Akzo Nobel's India business, valuing the company at Rs 12,000 crore (approximately $1.1 billion). This will make the paint-maker the fourth-largest in the now highly competitive domestic paints market. Ending months of negotiations, JSW has agreed to pick up 74.76% stake in the Akzo Nobel India for Rs 8,986 crore, an over 17% discount to Thursday's price. ET in its May 26th edition was the first to report that JSW had agreed for the billion dollar acquisition – its largest so far and had entered in 'exclusive negotiations.' 'Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens,' managing director Parth Jindal was quoted in a release. 'We are excited to welcome them to the JSW family,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gujarat Mosquito Crisis Solved by Strange New Device (See How) Mosquito Eliminator Read More Undo JSW Paints has trumped bids from a consortium of Indigo Paints and Advent International, and adhesive manufacturer Pidilite Industries, as it sought to fortify its presence in the industrial paints segment, where it will now be the second-largest after Kansai Nerolac India. Morgan Stanley and Citi was the exclusive financial advisors for the deal. Live Events Apart from an approval from the Competition Commission of India, the deal will be subject to completion of a mandatory open offer to the shareholders of Akzo Nobel India. The SEBI-mandated open offer will be for a 26% stake to be purchased from minority shareholders of the company. Depending on the success of the open offer – price will be in accordance to the Sebi formula based on Thursday closing price – JSW will buy proportionate shares from Akzo. It will not cross the 75% threshold, which means the Dutch company can potentially retain a small stake. At 0942 IST, the shares were up nearly 6% at Rs 3,383.10/a piece on the BSE. After hitting a lifetime high of Rs 4,649/share in October last year, its shares have since seen correction, and are down nearly a third from their peak. Subdued demand conditions for the industry also weighed on the company's share prices as the sector saw annual demand fall for the first time in nearly three years amid higher competitive intensity. Akzo Nobel India has about a 7% market share in India currently. Akzo Nobel India, which sells under the 'Dulux' brand in India, has completed seven decades of operations in the country. 'With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector,' Greg Poux-Guillaume, the chief executive officer of AkzoNobel said. While JSW Paints, launched in 2019, was among the earliest conglomerates to foray in the paints sector, the company has not been able to garner substantial market share over the years. Five years after its launch, the company posted its first operating profit in fiscal 2024, on a revenue of Rs 2,000 crore. AkzoNobel had announced plans to review its business operations in the Indian subcontinent in October 2024. In February, Akzo Nobel India hived off and agreed to sell its powder coatings business—its most profitable stream that contributes 12-14% of sales--to its Dutch parents. That took the shine off the deal for several potential suitors The Aditya Birla Group's 'Birla Opus' meanwhile, commands a high single-digit market share in about a year since launching its operations in 2024. It is targeting a turnover of Rs 10,000 crore in three years of its operations. Currently pegged at around Rs 80,000 – Rs 90,000 crore, the Indian paint industry is expected to clock in a 10-12% growth in volumes over the next few years, led by an impetus on housing and higher discretionary incomes. As compared to paint companies which were stepping into the Indian market a few years back, the recent years have seen conglomerates enter the space.
News18
26-06-2025
- Business
- News18
Multi-Cap Vs Flexi-Cap Funds: Choosing the Right Fit for Your Portfolio
As per AMFI's May 2025 data, Multi-Cap funds saw a net inflow of Rs 2,999.29 crore, while Flexi-Cap funds received Rs 3,841.32 crore. As equity mutual funds continue to gain traction among Indian investors, understanding the difference between Flexi-Cap and Multi-Cap funds is crucial for informed investment decisions. Experts highlight that the key difference comes down to one word—freedom. According to Navy Vijay Ramavat, Managing Director at Indira Group, Multi-Cap funds follow a SEBI-mandated structure—requiring a minimum 25% allocation each to large-, mid-, and small-cap stocks. This rule ensures disciplined diversification across company sizes, helping balance performance across market cycles. However, this structure also limits a fund manager's flexibility in responding to market changes, which may increase the risk-reward intensity during volatile phases. On the other hand, Flexi-Cap funds offer complete flexibility, as long as at least 65% of the assets are invested in equities. Fund managers can adjust allocations based on market conditions—going all-in on large-caps during downturns or shifting focus to mid- and small-caps during rallies. 'My style aligns more with Flexi-Cap," said Ramavat. 'It allows me to move across segments depending on where I see opportunities." He added that sectors often matter more than market caps, and being nimble across segments creates opportunities—especially for short- to mid-term traders. 'Cash is also a position," he noted, highlighting the importance of timing and allocation. Echoing this, Manish Kumar Goyal, Chairman and Managing Director at Finkeda, emphasised that Multi-Cap funds are ideal for investors who seek stable and balanced diversification with a rule-based approach. 'Flexi-Cap funds are more suitable for those who want dynamic allocation based on market trends," he said. In summary: Multi-Cap = Stable, rule-based allocation across all caps Flexi-Cap = Dynamic, market-driven flexibility
Time of India
22-06-2025
- Business
- Time of India
SIF vs mutual funds vs PMS vs AIFs: What you need to know
Looking for the best mutual funds to invest? Here are our recommendations. Mutual Funds (MFs) Mutual Funds are pooled investment vehicles regulated heavily by SEBI. They cater to retail investors and allow exposure to a broad set of asset classes such as equity, debt, and hybrid combinations. Key traits of Mutual Funds: Low entry barriers (SIPs can start at ₹500) Highly liquid with daily NAVs and redemption flexibility Standardised investment strategy (equity, debt, hybrid) Ideal for passive investors seeking low-to-moderate risk But their mass appeal also comes with limits — restricted customisation, fewer complex strategies, and a one-size-fits-most approach. Portfolio Management Services (PMS) PMS offerings are aimed at affluent investors looking for personalised strategies. They provide discretionary or advisory services for portfolios, usually managed by experienced fund managers. Highlights: Minimum ticket size: Rs 50 lakh High degree of personalisation based on goals and risk appetite Actively managed and bespoke asset allocation Lower liquidity than mutual funds Higher costs (including management and performance fees) Alternative Investment Funds (AIFs) – The High-Risk, High-Reward Engine AIFs are pooled investments operating in less-regulated, non-traditional spaces. This includes private equity, hedge funds, structured debt, and real estate. Key features: Minimum investment: Rs 1 crore Three categories: Category I (social impact, infra), Category II (private equity, debt), Category III (hedge funds) Less liquidity due to long lock-in periods Lower regulatory oversight Ideal for HNIs and institutional investors with higher risk tolerance While they offer unparalleled exposure to niche assets, the complexity and high barriers make AIFs inaccessible for most retail investors. Where do SIFs fit in? SIFs aim to bridge the structured simplicity of mutual funds with the customisation of PMS and the sophistication of AIFs. They allow fund managers more flexibility in asset selection — including unlisted securities, real estate, and structured debt — while operating under a stricter regulatory framework than AIFs. Structure and regulatory oversight SIFs follow SEBI-mandated norms for transparency, liquidity, and diversification. Unlike AIFs — which are largely unregulated in how they allocate capital — SIFs must: Adhere to strict portfolio disclosures Offer SIP/SWP options Stick to a single strategy category (equity, debt, or hybrid) per fund This ensures greater accountability and clarity for investors. Furthermore, the minimum investment threshold for SIFs is ₹10 lakh, striking a middle ground between mutual funds and PMS/AIFs. This makes them suitable for experienced investors who may not yet qualify as HNIs. Liquidity and tenure Liquidity is one of the core differentiators. Mutual Funds: Daily NAVs, instant redemptions PMS: Periodic exits, subject to portfolio's nature AIFs: Multi-year lock-ins; highly illiquid SIFs: Moderate liquidity — can be open-ended, closed-ended, or interval-based Investment flexibility and strategic depth Redemption periods for SIFs can extend up to 15 working days, allowing fund managers to manage liquidity prudently. SIFs are allowed to operate only one strategy per fund — either: Equity-oriented Debt-oriented Hybrid While this is limited compared to PMS or AIFs, it provides clarity and focus. This also prevents over-diversification within a single fund, which can dilute returns and increase risk unpredictability. Conclusion Specialised Investment Funds are a welcome innovation in India's investment universe. They offer a tailored investment approach for affluent and informed investors who seek: More flexibility than mutual funds Lower entry barriers than PMS or AIFs And a regulated, strategy-driven structure that balances control and innovation As Indian investors become more financially literate and seek nuanced products beyond vanilla funds, SIFs could become the new middle path, offering risk-calibrated sophistication for the next generation of wealth creators. (The author Chakravarthy V. is Cofounder & Executive Director, Prime Wealth Finserv. Views are own) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
