December 31, 2020
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DP Service Centres 31,281
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The National Depository Center (NDC) and NSDL have signed a Memorandum of Understanding (MoU) to build a close cooperative relationship between the central securities depositories.

The MoU aims at co-operation in securities clearing and settlement related matters to help foster the prosperity of the financial markets in Russia and India, promote access to each other's experiences on behalf of their respective participants, and explore opportunities for co-operation in both clearing/settlement operations and establishment of operation linkage.

The agreement includes:

  • regular meetings between senior management to increase mutual understanding of business developments;
  • understanding their securities markets through exchange of staff and training; and
  • conduct joint studies or discussion meetings on topics related to securities clearing and settlement operations.

Mr. Gagan Rai, MD & CEO of NSDL, commented: The depth and breadth of NDC's experience in both domestic and crossborder transactions is of interest to NSDL and our clients. We place great value in developing a cooperative relationship to further the growth and prosperity of our respective markets.

Mr. Nikolay Egorov, Director of The National Depository Center, said: We believe that closer cooperation of NDC, the biggest settlement depository in Russia, with NSDL, a critical infrastructure in one of the world's fastest growing economies, will lead to great benefits and enriched knowledge for both parties. Together, we will discover ways to further improve our business operations and service offerings to clients interested in the Indian capital markets.

Not-for-Profit Partnership The National Depository Center is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 95% of transactions conducted in the corporate and regional bond markets, and stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. For 2007 the value of assets in storage was more than RUR4.3 trillion. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, the substituting numerating agency for the CIS, authorized to assign the international ISIN and CFI codes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using direct accounts at Clearstream Banking S.A. and Euroclear Bank. It also holds accounts at the Central Depository of the Republic of Kazakhstan and the NDC of the Republic of Azerbaijan.

Among NDC's founders are MICEX and Bank of Russia (the founders' shares in the property of NDC are 46.7% and 39.3% respectively, and in the votes 50.2% and 42.3% respectively). Members include GPB OJSC (Gazprombank), Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, UniCredit, Deutsche Bank, and Sberbank. The Partnership also has a stake in Depository Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).

Name Change of Depository Participant (DP)

Consequent to the change in name, the Securities and Exchange Board of India has granted certificate of registration to the following DP as Participant of NSDL:

Old Name New Name DP Id
Jyoti Jain Investment and Finance Co. Pvt. Ltd. DBS Cholamandalam Securities Limited IN300572

Further explanation provided by NSDL: DPs are advised to obtain prior approval of NSDL with a request letter which states that the DP has a written arrangement with its holding / subsidiary company as the case may be and shall ensure compliance of SEBI / NSDL regulations and circulars.

Increase in minimum networth requirement of Stock Broker DPs

The minimum networth requirement for both, existing as well as prospective DPs under Stock Broker category has been increased from Rs. One crore to Rs. Three crore. If an entity is already acting as a DP on March 14, 2008, it will be required to fulfill this requirement by March 31, 2009. In case of non-banking finance company (NBFC) and a registrar to an issue or share transfer agent, minimum networth as specified in the SEBI Regulations will apply. This has been informed to DPs vide Circular No. NSDL/POLICY/2008/0017 dated March 19, 2008.
No further explanation required.

Launch of e-Token for SPEED-e facility

NSDL has launched an e-Token facility to DPs and its clients who have subscribed to SPEED-e. e-Token is a hardware device which can be connected to standard USB interface and which is embedded with Digital Signature Certificate (DSC) issued by a trusted third party i.e. Certificate Authority (CA) with private key of the user for digitally signing the transaction. Users, who wish to avail e-Token option, will have to purchase an e-Token, which at present costs around Rs.1000/-. This e-Token kit can be sourced from any vendor of users choice and who has ability to supply the stated e-Token specification. Relevant details of this facility are mentioned in Circular No. NSDL/POLICY/2008/0013 dated March 3, 2008 issued to DPs and the same is posted on NSDL website

Guidelines on opening of Trust accounts

DPs have been requesting NSDL to issue a consolidated circular for the procedure regarding opening of Beneficial Owner [BO] accounts in case of 'Trusts'. In consideration of the requests of DPs, the procedure and documents required for the opening of BO accounts in case of registered trusts / public trusts, un-registered / private trusts and trusts established by organisations for providing terminal benefits to its employees such as Provident Fund trusts, Gratuity trusts, Superannuation trusts etc. have been consolidated in a circular.

This has been informed to DPs vide Circular No. NSDL/POLICY/2008/0018 dated March 24, 2008. The text of the circular is posted on NSDL website

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