When trading in the stock markets heats up, conversations usually revolve around where prices are headed and how much money is changing hands. Commentary follows every move. What rarely enters the conversation is what happens after the trade is done. The part that ensures the shares actually reach the investor and the money reaches the seller works quietly in the background.

India’s capital markets depend on this unseen layer. Depositories, clearing corporations, registrars and similar intermediaries handle the mechanics that turn a trade into a completed transaction. They maintain records, manage settlements, process corporate actions and reduce the risk of failure in the system. It is not glamorous work, but it is essential. Without it, confidence in the market would break down very quickly.

This segment has expanded steadily as participation in the markets has widened. The rapid rise in demat accounts, heavier trading activity and tighter regulation have all added to the workload. At the same time, technology has helped these systems handle scale more efficiently. Their growth tends to track market activity, but their role is shaped just as much by compliance and operational discipline.

Rather than focusing on one or two companies, this article looks at the market infrastructure space as a whole. The idea here is to explain why these businesses have moved from the background to the core of India’s market structure, and how they support the broader capital-markets ecosystem. For investors, the takeaway is the role these firms play in keeping the system running reliably, even when they are not in the limelight.

Beacon Trusteeship also merits attention, though it has not been examined in detail. The company listed on the NSE in April 2025, and with Q2 FY26 only recently completed, post-listing disclosures remain limited. This makes it too early to draw firm conclusions on its operating performance. A clearer picture is likely to emerge as regular quarterly reporting builds over the coming year.

Central Depository Services is a Market Infrastructure Institution (MII), part of the capital market structure, providing services to all market participants – exchanges, clearing corporations, depository participants (DPs), issuers and investors. It is a facilitator for the holding of securities in the dematerialised form and an enabler for securities transactions.

Central Depository Services (India) reported a steady operating quarter in Q2 FY26, even as market activity moderated from last year’s highs. Industry-wide average daily turnover at NSE and BSE declined about 18% year on year (YoY), but investor participation continued to expand. The depository added over 65 lakh demat accounts during the quarter, taking its total to 16.5 crore and maintaining around 80% market share.

Total income for the quarter declined to Rs 290 crore from Rs 324 crore in Q2 FY25, while net profit fell to Rs 128 crore from Rs 171 crore reported in Q2 FY25. The year-ago period had benefited from higher dividend income from subsidiaries, while the current quarter’s earnings were driven entirely by core operating activity.

Income from core operations remained resilient, supported by higher account additions, corporate actions and transaction-linked activity. Management highlighted progress on regulatory initiatives such as Nomination Phase 2, aimed at simplifying investor succession, and continued investments in technology and human resources to support future........

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