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Central Depository Services (India) Limited (CDSL), a key securities depository in India, finds itself embroiled in a fresh arbitration initiated by Mr. Samir Shah, seeking indemnity for alleged loss caused by the misutilization of clients' securities by Anugrah Stock & Broking Private Limited. This development marks a continuation of a series of arbitration proceedings related to similar claims against CDSL, underscoring ongoing legal challenges linked to Anugrah Broking’s activities.
Key Highlights:
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Arbitration initiated by Mr. Samir Shah against CDSL claims indemnity for losses due to Anugrah’s alleged misuse of clients’ securities.
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The total claim amounts vary, with cumulative claims crossing Rs. 233 crore including interest and legal costs.
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Several prior arbitration claims involving CDSL and related parties have been actively disclosed since early 2024.
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The arbitration disclosures comply with SEBI Listing Regulations and Industry Standards Forum guidelines on materiality and timely reporting.
Details of the Arbitration:
The arbitration was reinvoked by Mr. Samir Shah who has placed multiple claims on CDSL under indemnity sought for the alleged misuse of securities by Anugrah Stock & Broking. The claims are substantial and include:
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Rs. 11,77,334.65 with interest at 18% until realization, plus legal expenses and other costs.
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Rs. 11,22,02,451.82 with similar interest and cost claims.
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Rs. 4,45,14,320.09 with interest and legal costs.
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Restoration of securities along with corporate benefits, legal expenses, and costs.
This fresh arbitration is linked to earlier proceedings also involving CDSL and various claimants including Mr. Ketan Shah, Ms. Prafulla Shah, and Lalit Shah HUF, with claims in hundreds of crores relating to alleged client securities misutilization by Anugrah Broking.
Regulatory Compliance and Previous Disclosures:
CDSL has consistently disclosed these matters in alignment with Regulation 30 oSEBI Listing Regulations, accompanied by Industry Standards Forum notes, acknowledging that the cumulative claims surpass materiality thresholds necessitating public disclosure. Prior updates were made on January 23, 2024; April 30, 2024; July 30, 2024; July 31, 2024; May 29, 2025; July 18, 2025; July 23, 2025; July 28, 2025; and August 01, 2025.
The company confirms that despite the ongoing arbitrations, it does not anticipate any adverse material impact on its financial position. CDSL’s compliance team ensures all ongoing litigations are promptly and transparently reported to regulators and stakeholders.
Context and Legal Environment:
The disputes originate from claims of securities misutilization by Anugrah Stock & Broking, a case that has generated multiple arbitration proceedings and legal scrutiny involving CDSL. The Bombay High Court and other judicial forums have seen related cases, emphasizing the role of arbitration tribunals in resolving such complex financial disputes.
Mr. Samir Shah’s claims are significant in scale and highlight the critical role of regulatory mechanisms in protecting investor interests and maintaining market integrity. The arbitration seeks not only monetary compensation but also restoration of securities and accrued corporate benefits affected during the alleged misuse.
Looking Ahead:
Investors and market participants are advised to monitor further disclosures as these arbitration proceedings develop. The robust regulatory framework under SEBI mandates continued transparent communication about material legal risks faced by listed entities like CDSL.
The case also underscores the systemic risks linked to third-party brokers and the importance of vigilant oversight by central depositories to safeguard client assets.
In Summary:
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CDSL faces a fresh arbitration claim from Mr. Samir Shah linked to losses from Anugrah’s alleged securities misuse.
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The cumulative arbitration claims, including interest and legal costs, now cross Rs. 233 crore.
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Multiple related arbitration proceedings have been disclosed since 2024 in compliance with SEBI regulations.
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CDSL states no expected material financial impact at this stage but continues transparent disclosures.
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The matter highlights ongoing legal risks for financial market infrastructure entities and the importance of regulatory compliance.
Source: Central Depository Services (India) Limited official announcements
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