Ladies and gentlemen, good day and welcome to the Q3 FY 2021 results conference call of CDSL India Limited, hosted by Axis Capital Limited. Please note that the CDSL does not provide specific revenues or earnings guidance. Anything said on this call which reflects CDSL's outlook for the future, or which could be construed as a forward-looking statement, must be reviewed in conjunction with the risks that the company faces. As a reminder, all participant lines will be in the listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aditya Bagul from Axis Capital Limited. Thank you, over to you, sir. Thank you, Margaret. Good morning, ladies and gentlemen, and a warm welcome to 3Q FY 2021 results call for CDSL India Limited. At the outset, let me just congratulate the management for a spectacular Q3 performance and wish them best of luck for the coming quarters as well. From the management team, we have Mr. Nehal Vora, Managing Director and CEO; Mr. Girish Amesara, Chief Financial Officer; Mr. Sunil Alvares, Managing Director and CEO, CDSL Ventures Limited; Mr. Swaroop Kumar Gothi, Vice President; Mr. Nilesh Kittur, Assistant Vice President. We'll begin with a short set of opening remarks from the management, post which we'll open the floor for Q&A. Without taking too much time, let me hand over the floor to Nehal, sir. Thank you. Over to you, Nehal, sir. First of all, I'd like to thank really Aditya for that kind compliment, and thank you for your wishes for the coming quarters. I wish you all a very good morning, and I hope all of you are safe and secure. I welcome you all to the CDSL's quarterly conference call for the quarter ended December 31st, 2020, and I trust each of you and your loved ones are safe and healthy. I'm joined on this call by other members of my management team, which includes the chief of business, the chief of regulations, the head of business, and the MD and CEO of our subsidiary, material subsidiary, CDSL Ventures, who will then address your questions later in case if you have any. At the beginning of the financial year, we have stated our vision and our mission to promote the ethos of Atmanirbhar Niveshak or the self-sufficient beneficial owner or basically investor. As we reached the INR 2 crore milestone last year in January 2020, and with INR 2.9 crore investors as on December 31st, 2020, it's a testimony of the growth of capital markets and a reward for the convenience and security offered by CDSL and its subsidiaries and its services. It also testifies that we're building an authentic and consistent capital market ecosystem with good governance. We hope that with the changing times, individuals and companies continue to start availing digital solutions and online services and grow to be self-sufficient and an Atmanirbhar Niveshak. We will continue to innovate and offer e-services and digital solutions to all capital market participants. Speaking on our business update during the last three months, the number of new active beneficial owners accounts with CDSL has increased by approximately INR 28 lakh, taking the total of active beneficial owners to INR 2.89 crores. The comparative number of new beneficial owners for the quarter ended September 30th was about the same level at around INR 29 lakh. As on 31st December 2020, CDSL has around 589 depository participants offering depository participant services from over 20,500 locations across the country, covering about 96%-97% of the PIN codes. These depository participants consist of clearing members, banks, custodians, and non-banking finance companies. We have also initiated new services in line with transformation and requirements of the current times to promote the initiatives promoted by the central government. Basically, in addition to our e-Voting services, we also offer services to hold annual general meetings through video conferences to make an annual general meeting basically a hassle-free event, but more importantly, a safe event for the shareholders and the company. We also provide email updation services to companies to update their shareholders and to ensure that the determination of the communication to the shareholder is valid, sufficient, and productive. To also add another important initiative is basically the International Finance Centre, where CDSL remains as the only depository to have an international branch. We are hopeful that as there are a lot of initiatives in the current finance bill, this is going to be an interesting opportunity going forward. Before I hand it over to our Chief Financial Officer. I want to take a brief moment to place our appreciation and gratitude to all our stakeholders, the beneficial owners, depository participants, issuers, regulators, employees, and other market participants for their constant faith in us. With this, I would request our Chief Financial Officer to take through our financial performance. Over to you. Thank you, Nehal. Good morning to everyone attending this call. On speaking on our financials, we have seen a healthy growth in this quarter with a YoY increase of 150% in our consolidated net profits. The total income on a consolidated basis for the December quarter ended 2020 has increased in rupee terms by INR 34.71 crores, which is 51% compared to last year's similar quarter. We have achieved a total profit of INR 103 crores compared to INR 68.49 crores during last quarter. Net profit after tax on a consolidated basis for the quarter ended December 31st, 2020, it has increased in value terms by INR 32.42 crores, which is 150%, and we achieved a profit of INR 54.03 crores from last year's same quarter of profit of around INR 21.61 crores. Total income on a standalone basis for the quarter ended December 31st, 2020, has also increased by INR 29.08 crores in value terms and 56% compared to last year. Total income has increased to INR 81.25 crore from INR 52.70 crore during last quarter. Net profit after tax on a standalone basis for the quarter ended December 31st, 2020, has increased by INR 28.96 crores, which is 206%. INR 43.02 crores in December 2020 compared to INR 14.06 crores for the quarter ended December 31st, 2019. With this, now I will request Mr. Sunil Alvares, MD and CEO of CDSL Ventures Limited, to give an update on the operations of the wholly owned subsidiary. Thank you very much. Good morning and a warm welcome to all of you. I'm Sunil Alvares, MD and CEO of CDSL Ventures Limited. On the back of a very buoyant capital market, CDSL's performance, CVL's performance was very encouraging for the period April to December. Far as the KYC business was concerned, we added INR 42.74 lakh KYC records during this period as compared to INR 18.21 lakh in the same period last year, which was a growth of 134%. In terms of the RTA business, we added another 193 companies, taking the total number of companies to 625. We were doing some processing for PMJJBY and the number of records processed out there as well has jumped by 106% from 66,000-28,000. On the GSP business side, there was a slight dip in the number of records processed from INR 2.31 crore-INR 1.88 crore. A slight dip of about INR 16 lakh records. We are likely to see these numbers increase in the coming quarter. On the income side, for the period April to December 2020, the operational income was INR 48.69 crores as compared to INR 41.40 crores for the same period last year, which was a jump of INR 7.29 crores or 18%. The total income was INR 58.92 crores as against INR 49.77 crores, which was again a jump of 18% or INR 9.15 crores. On the total expenditure side, for the period April to December 2020, the expenditure was INR 21.17 crores as against INR 22.86 crores last year, which was a dip of INR 1.68 crores or a dip of 7%. The profit before tax was INR 37.74 crores as against INR 26.90 crores, and the profit after tax was INR 29.33 crores as against INR 20.01 crores. With that, we could start off the Q&A session. Thank you very much. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Anyone who would like to ask a question, please press star and one at this time. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prakash Kapadia from Anived Portfolio Managers. Please go ahead. Thanks for the opportunity and congrats to the team on continuous good performance. A couple of questions from my end. If I look at nine-month revenue for our subsidiary, they are at. Around INR 490 million as compared to much higher revenue in the depository segment. I wanted to know, Sunil, is it the SEBI project was there in the base and in the three months, nine months, what is the SEBI project revenue for this year? Ex of that, is the growth much higher? Well, actually, the SEBI project did not contribute much in terms of the income last year. Whereas we got about INR 9 crores last year from the SEBI project, it was about INR 1 crore of rupees in this financial year. Basically, the KRA business, which has done exceedingly well, okay, as compared to the previous year. Okay. Ex of that, the growth looks okay. That's right. This INR 9 crores was more like annual number and this INR 1 crore is nine months, if I were to compare nine months. Last year, the income from the SEBI project was about INR 9.49 crore. Okay. That was for the full year. In this year, they had planned to open the site again to investors once again, but because of the pandemic, it got postponed. It will happen, but we don't know when. That's helpful. On the other income part, what is the fall in yields as compared to nine months of last year? I look at other income, it is up around 9%. Any mark-to-market gains or losses in this figure, if Girish? Yeah. The investment income, comparatively, if you see, it has increased by 19%. Basically, this is all mark-to-market gain, which has accrued during these nine months. I hope I answered. I didn't quite get it. You said investment income is increased, but the mark-to-market gain should translate into mark-to-market losses because overall nine months the other income is up around 8% at around INR 498 million. Yes. I'm sorry. I was looking at the quarterly numbers. The other income has increased by 8%. Last year we had an income of INR 46 crore, and this year we have increased income of INR 49.75 crore. Basically, we don't have any mark-to-market loss overall. It's all mark-to-market gain. This is the incremental gain amount. yields would have fallen by around 80-100 basis points, overall yield? Overall yield on corporate bench bond sectors, yes, it would have fallen, our investment in corporate bond is negligible. Most of our investments are contributing into fixed deposits and debt scheme of mutual funds, largely FMPs. That's about it. Fine. Couple of data keeping points, if you could give the revenue breakdown in terms of the key revenue charges. Should I give it on a nine-month basis, or you want it quarter to quarter? If you have quarter, it's better. Otherwise, we can take year-to-date, whatever is readily available. Okay. No, I have both. I can give you both. Yeah. First I will give you quarterly details. Sure. The quarterly income on operation level, the transaction charge income has contributed around INR 30.90 crore, that is roughly INR 31 crore, which is 30% of our operating income. Annual issuer income has contributed around INR 21.69 crore, which is 21%. Online data charges, which is mainly the income of the CDSL Ventures, has contributed around INR 13.10 crore, which is 13% of our overall income. IPO corporate action has roughly contributed around INR 6.95 crore, which is 7% of our total income. Cash statement charges is around INR 4.45 crore, which is 4%. Rest of other operating income are minuscule. They are contributing in a range of 2%-1%, like user facility charges, settlement charges, account maintenance charges, e-Voting charges, foreign portfolio monitoring. So this is the breakup of overall income on quarter-to-quarter basis. Sure. That's helpful. The last question from my end. Nehal, there was a mention in the budget about regulations being taken by the government to consolidate some of the three bills. What kind of an impact do we see going forward? Does this lead to a common Demat account and more financialization and depository role getting more and more crucial in the coming years in India? The regulatory framework is on a as is where is basis, because SEBI is the core regulator. What they are doing is combining the SEBI Act with the Depositories Act and the Securities Contracts Regulation Act, which has references of stock exchanges in the SCRA, which is of 1956. SEBI Act is of 1992, and Depositories Act is 1996. They're kind of combining these three. The other one is the securities and g overnment securities and the spot exchange, the gold spot exchange. These are two other interesting announcements made. Till now, government securities was kind of in a combined role of RBI and SEBI, that they are kind of moving it more towards a SEBI kind of a role. It will have the same reforms as other securities market instruments which are there can be extended for government securities. The gold spot exchange is another interesting announcement made, which will now be regulated by SEBI. We'll have a national gold exchange. The settlement process, et cetera. These are some of the interesting kind of the announcements which are made, and we see how it is actually panned out further. Great. I'll join back with you if I have more questions. All the best. Thank you. Thank you. The next question is from the line of Paresh from Clave. Sorry, Clave Millennial. Please go ahead. Hi, Nehal. Congratulations on wonderful performance again. Congrats to the entire team members as well. Trust all of you are healthy and safe. My question is largely on two counts. One is, Nehal, for the first time I see you've added a new slide called New Services, which are under the CVL. Just wanted your perspective on which are the services that look very promising that can be added to the existing bookyear products, both on the CVL side as well as the corporate side. Right. The second question is on, we are doing phenomenally well as far as the retail account is concerned. What is interesting is we are beginning to see some traction on the corporate side as well. For example, I understand that last quarter we had about 15,455 companies, that's now scaled to almost 16,000. We've had good traction over there. What could be the strategy and how do we kind of get high incremental market share on the corporate side? Thanks. Okay, Paresh. Thank you. I think before I hand over to Sunil to answer the question on CVL on a broad strategic basis. We are kind of focusing more on the digital footprint of ensuring that more and more companies get connected into the depository services through online mode. Recently, SEBI and the ministry, actually, the government has designated CVL and CDSL to use directly the Aadhaar-based authentication. That is moving towards an online opening of Demat accounts, where we will be authorized to use Aadhaar after the Supreme Court order. We are waiting the final round of the approval. Everything has been completed. From an overall strategic standpoint, it kind of makes it the ease of doing business when it's through an electronic digital mode. Be it, the RTA services, the e-Voting services, the AGM services, as well as the new Demat accounts which are getting opened, it becomes easy for them to do it. It's an all-round performance which is done, and that's our focus that our three key stakeholders, the DPs, the depository participants, issuers, and the investors, find it extremely easy to manage the CDSL services through an online mode. That brings in the transparency and our key theme or motto, as I stated in my opening remarks, is making the investor self-sufficient or really atmanirbhar, so that they can do it themselves rather than really relying on people. That brings in the trust into the system at a higher scale and thereby encouraging more and more people who can join the fold of the ecosystem. As we've seen during the national pandemic, we've opened around a significant amount of Demat accounts coming from Tier 2, Tier 3, Tier 4 towns also. They have an opportunity of coming into the mainstream market. Similarly, the issuers also have been able to link up. Despite the national pandemic, we have been able to grow our system because we are focusing more and more on our platform for companies to join. I'll ask Sunil to add any points. Yeah. So far as the CDSL Ventures Limited services are concerned is we've focused on trying and tightening up the existing processes, in the sense that there was a lot of manual verification required on the KRA processes. We've tried and automated that as much as possible. This service should be launched shortly by us, where we would be automating the KRA service and reducing tax significantly. So far as the other businesses are concerned, what we see is that you would have seen the consultation paper put out by SEBI on the KRA part recently, and basis that we are working towards that as well. What we see is that most of the KYC, et cetera, would be an online or a digital process, and we've already applied for Aadhaar-based license from UIDAI, and are in the final stage of obtaining the same. We have also registered with the UIDAI, sorry, with TCA for our eSign license. We've also launched an online account opening application. With the combination of these three, we see a larger number of intermediaries who can use the online piece as well as use Aadhaar as well as eSign and open more accounts and add to the KRA business. That, in a nutshell, what we are looking at in the next quarter. Sure. Even on the KRA consultation that you just referred to, a clarification on that. The SEBI said that will be a one-time exercise where we re-verify all the KRAs. Now, would re-verification include even the KRA that we have done or it's only KRA which are done by others, for instance? Yeah. It is all the records which are there in the KRA, whatever KRA records I am holding- Okay SEBI wants those records to be re-verified. As I see it is that currently in CVL, we have a process of verifying all the records as well as there is an audit done separately, and this audit report is placed every quarter to the board. To that extent, I think we will not be required to do that. Okay. Just, Nehal, one clarification as well. Nehal, in your opening remarks, you mentioned about being very bullish on the prospects of being there in the GIFT City. Why would that be such a big game changer, Nehal, from a three- five year perspective or even longer? See, I think the government focus is creating a Hong Kong in India, and this is like a regulatory sandbox, where the regulatory regime is a lot more relaxed. Everything is in US dollars, so capital account convertibility issues are not there. Since India is now becoming a go-to destination, as we've seen in the vibrancy of the FPI investors investing in the securities market, despite it not being capital account convertible. I see that kind of becoming an interesting market for the FPIs to see where we can become a hub for the entire, basically the Asian market, where really the production and consumption is focused in the world. A lot of the price discovery is going to move towards Asia from the West over a three-five year time in horizon. If you have an ease of doing business, it's kind of easy way of really accessing India as a jurisdiction and not having the risk of the rupee out there. This can be an interesting proposition for a lot of people. Nehal, any figures in terms of how large the opportunity can be? Any rough figures? It will be difficult to assess at this point of time. I think what you should look at how well has Singapore, Dubai, et cetera, grown. Okay. We can probably kind of really basically overtake that. Hong Kong, Singapore, Dubai are the three markets which have grown in basically Asia. Okay. This can become an interesting opportunity. Also the current volumes on the exchanges in the GIFT City are seeing some real vibrancy in terms of volumes. As things start getting to really ease off, we are going to have more investment-related products coming in, and that's going to be more of the sticky volume which is going to remain. Okay, thanks. I'll get back to the queue. I appreciate these answers. Thank you. Thank you. Thank you. The next question is from the line of Aditya Bagul from Axis Capital. Please go ahead. Hi, sir. Thank you for giving me the opportunity. Just wanted to ask a couple of questions. One is on our transaction revenue, right? We've seen a steady pickup, which was a run rate of about INR 9 crore-INR 10 crores a quarter last year. We've moved to almost a INR 30 crore a quarter sort of a run rate. I understand that there is a fair bit of revenue coming from pledge and pledge of shares as well. Can you probably help us understand how much of it comes from that piece and how much is a pure increase in our base transaction revenue segment? I'll ask our CFO, Girish, to answer that. Aditya, can you repeat your question, please? Yeah. I just wanted to understand that there will be some component of revenues which are coming on account of pledge and unpledged share and a few new regulations that have come into place within the transaction revenue segment. Just wanted to understand of the INR 30 crore revenue that we made, INR 31 crore revenue that we made in this quarter, how much of that would be attributable to those segments or those new revenue highlights, and how much would be a core transaction business? If you recall, last quarter reported well in this call that around from the transaction charge of last quarter, we had around roughly INR 1.75 crore or around that we had earned from pledge, repledge, margin pledge, et cetera. In this quarter, we have recorded a transaction charge income of INR 30.94 crore, out of which roughly you can consider that there is income on account of pledge margin pledge, et cetera, of around INR 2.5 crore. That is the thing. I mean, there is only INR 2 crore. Yes. Annualized, that number could be INR 8 crore-INR 10 crores on a steady state basis. Yes. Okay. I think that will be difficult to predict, Aditya, because as the number of accounts grow, the transactions also grow and the margin pledge abilities also grow. If you say that it won't be a simple kind of basically an extrapolation of one quarter into another quarter, because the number of accounts also are growing every quarter. Understood, sir. Very helpful. Just a second point, again, Nehal sir, you highlighted that we've seen a reasonable increase in accounts from Tier 2, Tier 3 locations. Can you probably help us understand a little more as to whether this is, in your opinion, whether this is a sustained trajectory, where or is there a geographical concentration or a customer concentration of these accounts which are coming from the Tier 2, Tier 3 locations? I think it'll be difficult to predict whether it'll be sustainable or not, but it is expected to be sustainable. The reason is that it has not fallen off on every quarter-on-quarter. It has been growing. The reasonable expectation is that today around 7%-8% of the Indian population is only kind of accessing the securities market. There's a huge potential, and we have a huge young population coming into the workforce. With the government guarantee schemes becoming a thing of the past, the only access for wealth creation for your planning for that old age and retirement is the securities market. The first point of call for any exposure in the securities market will be opening a Demat account. I see there is a huge pent-up potential which can be tapped in. Whether that will translate in the next quarter or next year or next three years or next five years is something which we'll have to wait and watch. I think the important thing is that the entire paradigm of doing things is doing it yourself. Give as much information to each of the investors, and that brings in trust and security into the system. Great. That is very helpful. Margaret, can we go back to the queue? Thank you. The next question is from the line of Kunal Thanvi from Banyan Tree Advisors. Please go ahead. Hi, Nehal. Good morning. Congratulations on the good set of results and stellar performance in last one year. I had few set of questions, just wanted to understand, this year has been an aberration year for us and the securities market as such. We have seen a flush of new Demat accounts coming in. If you look at it, the number of Demat accounts that have come this year are even larger than, it's a three, four years growth that has come in one year. How should one look at it in terms of next three years in terms of the settlement values, settlement market for the entire capital market in India? That is point number one. Second is, if you look at our profitability, we are in a way peaking in terms of our historical levels. As a management, how do you look at it? Because one understands the fact that it is a high employee cost business where the operating leverage could be higher than what we have seen in the history. How do you as a management look at that particular aspect of profitability? Third is, my last question is on the fact that as a company, we have been very vibrant in last one year in terms of capitalizing the opportunities that come our way in all the businesses that we are present in. Apart from already discussed things like the new KYC, KRA regulation that is coming, any other avenues that we see are interesting and we are looking to invest in the same? I remember you mentioning about pre-entering the NAD last quarter. Any interesting thing that we should note? Thank you. Yeah. I think growth of Demat accounts this year has been a very high growth year. Whether it sustains at the same levels or it is at a lower level is something which we'll have to wait and watch. I think our core focus as a management team, and my focus as MD is to create a sustainable solution which is safe, secure, convenient, and creating that trust in the ecosystem that people want to come back to it really again and again. For me, the biggest success would be when my own clients and customers become my own people who will spread the word around that CDSL is a good platform to go to. I think that is our focus. Whilst it is important to increase the Demat accounts, but our focus is to create a safe, secure, and convenient solution platform. Whether that translates into numbers or not is really a by-product. It's not the main focus of the management team. Your second question, I'm sorry, can you repeat your second question? Sustainability of the profitability and operating leverage in the business. Yeah. I think for us, the two main raw material and work in progress and finished goods are our people and the technology. Obviously, technology also needs to be constantly updated, upgraded. Information security is going to be another important component of our business, which needs to be constantly updated and upgraded. The people is something which we need to because these are highly specialized people required in this line of business. Our endeavor is going to be to keep the costs under overall control. However, not compromising on the quality of the people, the technology, et cetera, which is getting used. We will have to go forward wherever are the important aspects of employee, which needs to be increased or enhanced in terms of both quality and quantity, as well as our technology interface and prowess, both in hardware, software, as well as information security, is going to be a prime focus going forward. This is like building, as I said in my previous call, we are in the financial infrastructure space. It's like building a road. The road needs to be constantly very upgraded in terms of its quality of surface, at the same time, the security. Third is obviously the people who are really doing the operational tasks. That is going to be our focus. That would lead to some amount of an operational leverage as we go forward, because these are fixed costs which you invest in, and hopefully that translates into higher revenue, which may not translate into commensurate increase in the costs as the revenue increases year on year. There is an element of operational leverage, but how that cycle pans out, whether it is every three years, five years, or every year, because it's a combination of various costs which are across the board, both in technology as well as the employees. I'm sorry, I have missed the third question. Could you repeat the third question? My question was on the new avenues, apart from what you've already discussed and any update on the NAD. Yeah. NAD is something which we are continuously working. In the Indian scenario, the government has decided to take it over and give it free of charge to that. This is something we continue to focus on as phase II. There are a lot of other countries who are interested in this similar kind of ecosystem. We'll see how it goes forward in terms of being able to roll out. Secondly, is the universities to comply with what the government has done. We are really helping them also to comply with the interface which is required for that. These are some of the other initiatives. I think as the financialization of markets is happening, more and more commodities are entering the financial markets. I think that safekeeping custody is going to become the most important driving force of this financialization of the market. Pledge/re-pledge, for example, gives an interesting feature to the entire suite of products, which can add the financing piece also to the securities market. These are some of the important building blocks where CDSL is directly in it, and it will continue to grow. Sure. Thank you. Last, if I can squeeze some bookkeeping questions on. Girish, if you can help us with quarterly breakup for last year's same quarter for the revenue. Nehal, if you can talk first to our dividend policy and any thoughts on with the improvement in the profitability and the scale, any thoughts on improvement in the dividend payouts? Thank you so much. Yeah, sure. Yeah. Go ahead, Girish. I will first provide the details of the income breakup. I'll start with annual issuer income that we achieved during this quarter is INR 21.9 crores compared to INR 19.48 crores during last quarter. Transaction charge income we have achieved is INR 30.95 crores compared to INR 11.17 crore last quarter. Another major source of revenue is online data charges, which we have achieved is INR 13.10 crores compared to INR 9.39 crores during last quarter. Another major source of revenue is IPO corporate action charges of INR 6.95 crores compared to INR 5 crores last year. Cash statement, we have contributed around INR 4.45 crores during this quarter compared to INR 2.51 crores during last quarter. This constitutes the major portion of our operating income, and the remaining portions are contributing roughly in a range of 2% to 1%. What about the e-Voting last quarter? e-Voting this quarter is around INR 1.6 crore compared to INR 44 lakh during same quarter last year. The e-Voting major income was already recorded in the second quarter, which we had discussed during last year's call. I hope I answered. Thank you. I would request Mr. Thanvi to rejoin the queue for follow-up questions. We would also request participants to please limit your questions to two at a time. The next question is from the line of Gokul Maheshwari from Awriga Capital. Please go ahead. Yeah. Just two questions. One is on the payout policy, if you're looking at any change, which was asked in the previous conference call. Secondly, on every few years, you get a hike on the annual issuer charges, and I think we're seeing already five years elapsed. Is there any update or engagement with the regulators on why this is an update? Thank you so much. On the dividend policy, it's a long-term sustainable policy. We've been fairly liberal in terms of our current dividend policy. We are also building our balance sheet in terms of its financial strength. There are going to be newer projects coming up both on technology, which I mentioned earlier, and also the newer, basically the IFSC centers, which will need some amount of money going forward. We will see. We'll wait and watch how this pans out. As of now, I think it's a fairly liberal dividend policy, and there are no plans of any changes as of now. The second question was? Was the annual issuer charges. The annual issuer charges. We have not really engaged because this is both NSDL, CDSL doing it jointly together. Of national pandemic, there has been an overall request to bring down the charges. We have not really approached it. We see how this goes out within this year. Okay, great. Thank you so much. Thank you. The next question is from the line of Aadesh Mehta from Motilal Oswal AMC. Please go ahead. Hello, sir. Thank you for the opportunity. I just wanted to understand the unit economics of your annual issuer business. What is the variable cost and the fixed cost which goes behind it? Thank you. It is the amount of securities which are dematerialized. It kind of becomes an annuity charge, which is the annual charges which we charge, which is kind of an annuity which is there. If there is any capital infusion or capital creation, there is a charge for the corporate actions, et cetera, which get created like a bonus or a right, et cetera. There are separate charges for that. For any voting which is done, e-Voting, again, there is a separate charge which is for that. It's basically a host of, depending on the circumstances of capital infusion, that kind of becomes a variable cost. That kind of adds into basically the annuity which is charged in terms of the total number of shares which are under us. Right. Just to paraphrase the question more accurately, if, say, a corporate like Reliance or Infosys, it comes for the annual issuer business to you, what kind of variable cost will you incur in converting those folios into your database? No. There is no variable. In terms of it is kind of a function of the number of folios. If the shareholders increase in a particular company, then the folios increase. The charges on the annuity have a ceiling also. Beyond a certain level, it is a fixed charge, which is there on a yearly basis. Okay. There is no variable cost. Most of the large companies would be at the ceiling. My question was more from the cost side. I just wanted to understand the cost side better. Okay, sir. Kind of that technology costs which are there, and the operational costs are there. Finally, the passive share capital, if there is no further corporate actions or no additions in terms of capital infusion, it remains in the system, but that is paid to ensure the security of that particular thing. Okay, sir. Wish you all the best. Thank you. Thank you. Thank you. The next question is from the line of Sunil Shah from Turtle Star Portfolio Managers. Please go ahead. Yeah. Thanks for the opportunity. My question was more on understanding how we can increase the total market size of the opportunity. Right now we are into depository for shares, but how about other alternates, like getting the insurance policies also in the Demat form, or maybe work toward getting the bank deposits also into the Demat form? If we can have some subsidiaries which maybe report into IRDA or RBI, that could help really increase our opportunity size tremendously or increase our market size altogether, because we have great credibility on the share Demat form. As a country, we are going digital and we are completely on safe, secure, and convenient mode of working. The other opportunities on insurance or bank deposits, if you could give me some understanding as to that is possible, or it can be evaluated, it can be thought upon, just going something off in terms of what we are doing right now. There is a process of deliberations happening called a Single Demat Account, where all financial assets come under one Demat account. That is under active deliberation at the ministry level, but it will require creating a framework where all the regulators need to come on the same page. We see how that goes, because each of these products, like insurance policies and bank deposits, will be driven by differential rules by their sectoral regulator. That has to kind of come to a common minimum program to ensure that it becomes like a Single Demat Account. While the idea is being thought through, the operation modalities, et cetera, will have to be worked out. We'll see how it goes. Yeah. Just if you can understand. We think that anything will progress in this direction in the next coming two years, or it will take some further time than more than two years for this to be implemented? It is hard to predict the timelines because till the proof of the pudding is in the eating, so till it is actually rolled out and operationalized. However, in the insurance sector, there is a voluntary Demat which is continuing to exist, and CDSL does have a subsidiary which does that. I think your question is more to do with a Single Demat Account where everything comes under one fold. That is something we'll have to see how it works out. Difficult to predict the timelines, how much time it will take. Thank you. I would request Mr. Shah to rejoin the queue. The next question is from the line of Amit Chandra from HDFC Securities. Please go ahead. Yeah. Thanks for the opportunity, sir. My question is related to the annual issuer charges. If you can provide what is the revenue contribution from the unlisted companies in this quarter, and also if you can provide the split of folio-based billing versus slab-based billing in the annual issuer charges. Is it fair to assume that, with increasing market share, the share of the folio-based billing should also increase? The same is not reflected in the annual issuer charges as of now. Have you witnessed a similar increase in the folio-based billing, or it actually follows after some time? It's my first question, and second question is on the debtor provision. We have seen a sharp decline in the debtor provision in this quarter. How do we actually see this moving? Do we need to provide more provision for the full year? Thank you. Answering your first question on unlisted revenue. In this December quarter, we have a revenue of INR 1.12 crore from the unlisted company's revenue. For the nine months, we have an income of around INR 2.82 crore for unlisted revenue. As far as the debtor provision is concerned, our collection efforts for the nine months ended December 31st were substantively well beyond expectation compared to what it was during September quarter this year. If you recall, not many companies were not operating during the first half of this financial year, and due to that, the payment that were forthcoming were not received on timely basis. Due to this increase in collection ratio more efficiently during the last quarter, this December quarter, the overall provision that we had made during September is reduced drastically in the quarter ended 30th December 2020. If we are able to maintain this collection ratio during the full financial year, this would be the picture that you will have and debtors as of now is fully provided as per the recovery effort and as per the expected credit loss method provided in the Ind AS. Okay. Generally, because we see a rise in the debtor provision in the fourth quarter. Yeah. That was interesting. On an average, our collection efforts were very good during this December quarter, and that has resulted into lower provision for debtors provision. Let's see for the March, we'll try to maintain the same collection effort, and we'll see what happens in March. Sir, also on the folio-based billing versus flat-based billing in annual escrow charges. If you can provide a breakup and also I was actually mentioning about the increasing market share that we have witnessed in the accounts, in the different Demat accounts. Will it translate into higher annual escrow charges, or maybe sometime utilize the share of the- I think this increase in folio prediction would be very difficult at CDSL end because that is depending upon the corporate action that is decided by the companies. With respect to the breakup that you intend to have for, i ncome based on folio basis and income based on slab basis. Can I come back on this because I need to check up on these details. Yeah. Normally, I think, Amit, we don't provide that level of detailing because it's finally a culmination. It's a combination of both folio-based as well as slab-based. I think the important thing is the overall revenue growth, which is happening in that. Thank you. I would request Mr. Chandra to rejoin the queue. The next question is from the line of Aalok Shah from MNCL Group. Please go ahead. Yeah. Thanks for the opportunity. Sir, congrats on the great set of numbers. Just two quick questions from my side. One is on the margin front. Sir, how do we look at overall EBITDA margin with every passing quarter? We've seen improvement there led by cost efficiency. Not maybe specific to a quarter, but on an aggregate basis, how do we look at margins as a whole? Two, on the last question, which got discussed in terms of collection efficiency between September and December. You had talked about some element of provisions being created. Has that got reversed now? What is the stock of provisions now on the balance sheet? On the first question on the EBITDA margin, I think it would be more or less at these levels given. Again, it's a function of the overall buoyancy and volumes in the market, which will also drive a part of the revenue. Our cost, as I had earlier explained, is kind of a fixed cost. There is a level of operational efficiency which is built in. Depending on our revenue, some part of our revenue is limited to how the markets as a volume perform, and some part is kind of an annuity business. It is kind of a function of both these factors, and at least our endeavor will be to keep in this broad band or broad range of the EBITDA margin. Each quarter-on-quarter will be a function of many such factors which have to be taken into consideration. As regard your second question, ask the CFO, Girish, to answer that. Yeah. On the provision for the bad and doubtful debts, for nine months ended, we have made a provision of around INR 7.34 crore compared to last year's provision of around INR 5.81 crore. I hope I answered your question on provision. What was this provision number in H1 FY 2021? If you could help me with that number, please. Half year. Just a moment, I will give you that. Half year was around INR 6.20. INR 6.20 crore. This helps, sir. Thank you. Yeah. Thank you, sir. Thank you. Ladies and gentlemen, due to time constraints, that was the last question. I now hand the conference over to Mr. Aditya Bagul for closing comments. Just wanted to say thank you to the entire management team for taking out the time and sharing your thoughts and commenting on the results. Nehal, sir, I'll hand the floor back to you for any closing remarks that you may have. I think closing remarks is that we'll continue to remain keeping our costs under control. What is required to be done will have to be done, as I mentioned, the technology costs as well as the employee costs. Our intent is to make this investor self-sufficient, and we hope that this will continue to ensure higher trust and growth in the CDSL system in terms of business. Thank you. Stay safe and stay secure, everyone. Thank you. Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.