IMPACT OF LISTING ON FINANCIAL PERFORMANCE OF DEPOSITORIES: A CASE STUDY OF CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)

In recent years, stock exchange listing has acquired great exposure in Indian Capital Market and has given a boost to shareholders for investing in listed companies. Listing is one of the widely explored topics in the literature. Several studies have been conducted to analyze the importance of listing of companies from diverse sectors on stock exchanges recognized over the country. The studies so far have led to divergent results analyzing the returns associated with stock listing and have portrayed the operating efficiency of the companies after listing their securities on a stock exchange. The present study seeks to examine the changes in the financial performance of depositories with particular reference to Central Depository Services (India) Limited (CDSL) after being listed on National Stock Exchange on June 30th, 2017. The paper attempts to predict and analyze the possible considerations and outcomes associated with listing of CDSL. The research is grounded on secondary data sources extracted from Annual Reports of CDSL for 22 Quarters, starting from F.Y. 2014-15 Quarter-3 to F.Y. 2019-2020 Quarter-4. The collected data is dispersed up to +11, -11 quarters to the event of listing. The study takes profitability, solvency, liquidity, operational efficiency, and asset utilization capacity as the study variables. Hypotheses testing is based on the mean values of variables, and the significance of difference in the variables has been tested using paired samples t-test. The findings highlight an ambiguous disparity in prior and post-listing financial performance, indicating that different parameters respond differently to the event of listing. The study reveals that listing possesses a substantial impact on the solvency and liquidity while it has a diminutive impact on profitability and asset utilization capacity of CDSL.