Central Depository Services (India) Limited (CDSL) has disclosed the filing of a renewed arbitration claim totalling ₹233.37 crore by Mrs. Prafulla Shah, the wife of late investor Mr. Lalit Shah. The arbitration pertains to alleged misutilisation of client securities by Anugrah Stock & Broking Private Limited, a broking firm previously under regulatory scrutiny.

This development was shared via an official filing to the National Stock Exchange (NSE) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in compliance with the SEBI circular dated July 13, 2023. The disclosure includes Annexure-1, detailing the new claim and its background.

Background of the Case

The matter originally stems from an arbitration claim filed by Mr. Lalit Shah, which was later withdrawn. However, in July 2024, CDSL had disclosed that Mr. Shah had re-invoked his arbitration claim for ₹233.37 crore. Following his demise, Mrs. Prafulla Shah has continued the legal proceedings, now submitting a fresh Statement of Claims with the arbitration tribunal.

As per the disclosure, Mrs. Shah is demanding indemnity from CDSL for losses allegedly suffered due to CDSL's role in allowing misuse of client securities by Anugrah Stock & Broking. She has presented multiple options in her claim, including:

1. ₹205.19 crore with 18% interest till realization along with legal and other costs.

2. ₹233.37 crore with 18% interest till realization and associated legal expenses.

3. ₹83.72 crore with 18% interest till realization and related charges.

4. Restoration of securities, including corporate benefits, legal expenses, and costs.

Legal and Regulatory Position

CDSL clarified that the disclosure is made under industry standards for materiality, as the cumulative value of similar arbitration matters exceeds the regulatory thresholds. These matters all involve common legal and factual questions, mainly around the alleged mishandling of client securities by Anugrah Stock & Broking Pvt. Ltd.

This isn’t the first time CDSL has had to address these arbitration-related developments. The company had previously issued multiple intimations between January 2024 and July 2025, outlining the status of ongoing claims, withdrawals, and reinvocations.

As of now, no settlement has been reported in the matter, and the company confirmed that no litigation has been filed against key management personnel, promoters, or ultimate controllers of CDSL.

Market and Investor Impact

Although CDSL has not disclosed the potential financial implications of this specific arbitration claim, the size of the claim—₹233.37 crore plus interest and costs—suggests a significant financial exposure if the award were to go against the depository.

That said, arbitration proceedings can be lengthy, and multiple rounds of litigation and negotiation are possible. CDSL has not admitted any wrongdoing, and the outcome will depend on the arbitration panel’s findings based on available evidence and regulatory obligations.

Wider Context of Anugrah Case

The case involving Anugrah Stock & Broking Pvt. Ltd. has emerged as one of the most high-profile alleged misappropriation incidents in India’s financial markets in recent years. Multiple clients had reported that securities held in their demat accounts were used or pledged without authorization, causing significant financial losses.

Several regulatory interventions, including action from SEBI and exchanges, have taken place. Multiple arbitrations have been filed by investors against brokers, depositories, and intermediaries, seeking compensation and restoration of their holdings.

CDSL’s Responsibility and Compliance Measures

CDSL, being one of India’s two central securities depositories, plays a critical role in the safekeeping of dematerialised securities. In its response, the company appears to be proactively complying with disclosure obligations and maintaining transparency with shareholders.

The company's disclosure reiterates that this matter is being reported in good faith under SEBI regulations and that the claims are yet to be adjudicated. There is also no mention of any internal financial provisioning made by the company for this case so far.

Additionally, there is no information on whether CDSL will challenge the maintainability of the claim, or whether it will seek to join Anugrah or any other entity as co-respondents in the arbitration.

What Happens Next?

The next phase in this case will involve the arbitration proceedings, during which both parties will present evidence, expert testimonies, and legal arguments. If the arbitral tribunal rules in favour of Mrs. Shah, CDSL may be ordered to pay a substantial compensation amount, which could affect its quarterly or annual financials depending on the timing of the award.

On the other hand, if CDSL successfully defends its position, it would set a precedent for other similar claims tied to the Anugrah matter.

CDSL has assured that any further developments will be shared with the exchanges in line with SEBI rules. Investors and market watchers will now closely monitor the outcome, especially considering the rising trend of investor activism and legal claims in the Indian capital market ecosystem.

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