This agreement is an important milestone in the company's plans to provide highly cost-effective, reliable and scalable network services and VPN solutions to corporates with a large multi-locational customer base, according to a company release.

CDSL will gradually shift its depository participants, registrar and transfer agents connected currently on VSAT to DSL, ISDN or dial up access along with VPN solution. The solution will adopt the same encryption technology from Intel as used by the US Army, Bank of England, Prudential Insurance, etc, said the release.

This changeover will make the network highly scalable and expandable and capable of meeting CDSL's aggressive expansion and growth plans, according to the release. The technical solution ensures that the company manages all security related procedures and systems and the data is never unencrypted in DishnetDSL's network. CDSL has made sure that the designed network has more than adequate redundancy to ensure the service is reliable.

In a press statement, Mr MG Damani, chairman and managing director of CDSL, said that this will help us in providing the investors better services and speedy information. CDSL's associates include stock exchanges at Chennai, Banglaore, Kolkata, Delhi, Ahmedabad, Baroda, BSE, NSE; UTI securities; and banks such as SBI, ABN Amro, Standard Chartered Grindlays, Citibank, ICICI, IL&FS, HDFC Bank, HSBC, besides several registrars and brokers.