1st February 2005
It is hereby informed that the Exchange has
received circular no.MRD/DoP/SE/Dep/Cir-4/ 2005 from SEBI. The
said circular which is self explanatory, is reproduced below.
Market Regulation Department
MRD/DoP/SE/Dep/Cir-4/2005
January
28, 2005
1. The Executive Directors/Managing Directors/
Administrators of all Stock
Exchanges
2. The Managing Director, NSDL
3. The Executive Director, CDSL
Dear Sir/s,
Sub: Review of Dematerialisation Charges
1.
Investors have been representing to
SEBI seeking a reduction in the charges paid by them for dematerialisation of
securities. The rationalization of charge structure for dematerialisation was
discussed at the Secondary Market Advisory Committee of SEBI (SMAC).
2.
After careful consideration of the
recommendations of the SMAC, as a first step, it has been decided to
rationalize the existing charge structure as under:
2.1
Effective from February 1, 2005 :-
a) No investor shall be required to pay any charge towards opening of a Beneficiary Owner (BO) Account except for statutory charges as may be applicable;
b) No investor shall be required to pay any charge for credit of securities into his/her BO account; and
c) No custody charge shall be levied on any investor who would be opening a BO account on or after February 1, 2005.
2.2 With effect from April 1, 2005 the custody charges
shall not be leviedon any investor. However, the Depositories may levy and
collect the charges towards custody from the issuers, on a per folio (ISIN
position) basis as at the end of the financial year, according to the table
given below:
Issuers to pay @ Rs.5.00 (*) per folio (ISIN position)
in the respective depositories, subject to a minimum as mentioned below:
|
Nominal value of admitted securities (Rs.) |
Annual Custodial Fee payable by a Issuer to each Depository (Rs.) (*) |
|
Upto 5 crore |
4,000 |
|
Above 5 crore and upto 10 crore |
10,000 |
|
Above 10 crore and upto 20 crore |
20,000 |
|
Above 20 crore |
30,000 |
·
Plus Service Tax
as applicable
The issuers would be required to pay custody charges to
the Depository with whom they have established connectivity based on the total
number of folios (ISIN positions) as on 31 st March of the previous financial
year or the minimum amount, as the case may be, by 30 th April of the each
financial year failing which Depositories may charge penal interest subject to
a maximum of 12% p.a.
3.
All the Stock Exchanges are advised
to:-
a)
implement the above with immediate
effect by making necessary amendments to the bye-laws and Listing Agreement, as
applicable ;
b)
to bring the provisions of this
circular to the notice of the listed companies/Issuers and also to put up the
same on the website for easy access to the investors ; and
c)
communicate to SEBI the status of the
implementation of the provisions of this circular and the action taken in this
regard in Section II, item no. 13 of the Monthly Development Report for the month
of February, 2005.
4. The Depositories are advised to:-
a)
make amendments to the relevant
bye-laws, rules and regulations for the implementation of the above decision
immediately, as may be applicable/necessary ;
b)
bring the provisions of this circular
to the notice of the DPs of the Depositories and the issuers whose securities
have been admitted into the depositories and also to disseminate the same on
the website; and
c)
communicate to SEBI the status of the
implementation of the provisions of this circular in the Monthly Development
Report for the month of February, 2005.
1.
This circular is being issued in
exercise of the powers conferred by Section 11 (1) of Securities and Exchange
Board of India Act, 1992 to protect the interest of investors in securities and
to promote the development of, and to regulate, the securities market.
Yours faithfully,
Secretary