The market watchdog SEBI or Securities and Exchange Board of India has given its go-ahead for the depository's public issue. Last year in December, the SEBI removed the company's DRHP from abeyance paving way for its  Rs 3,000 crore IPO.

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The IPO is among the most awaited in 2024. SEBI in its respect has issued the observation letter on September 30.

The observation letter is an indication that the IPO has got the clearance from the watchdog and has a validity of 12 months.

An observation letter is a document issued by the Securities and Exchange Board of India (SEBI) to a company in response to a draft offer document for an Initial Public Offering (IPO).

The leading depositories compan filed its IPO document in July and Sebi had placed the DRHP in abeyance in August.

Investment bankers said the regulator puts any IPO on hold if there is pending regulatory investigation or if information sought from the company or other regulatory bodies is not received on time. 

On the development, shares of CDSL last traded with a drag of over 1 per cent at Rs 1,349.9 per share.