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Networth Stock Broking Limited has been made operational as a DP on July 6, 2007. It will conduct its depository operations from Mumbai. The DP Id allotted is IN303331.

India Cements Investment Services Limited has been made operational as a DP on July 14, 2007. It will conduct its depository operations from Chennai. The DP Id allotted is IN303340.

NKGSB Co-op Bank Ltd. has been made operational as a DP on July 30, 2007. It will conduct its depository operations from Mumbai. The DP Id allotted is IN303358.

The above additions take the total number of operational DPs to 248 and the total number of DPM set-ups to 326.

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

As investors are aware, IDeAS facility was made mandatory for all the DPs in May 2007. It is an internet based facility for viewing latest balances and transactions of last 30 days. Those clients who wish to avail of this facility should contact their DPs for more details about IDeAS or visit at https://eservices.nsdl.com.

NSDL conducted training programmes in Ahmedabad and Hyderabad on July 7 and 14, 2007 respectively for compliance officers of DPs. Areas covered during the training programmes were compliance requirements, surveillance & inspection and internal audit. These programmes were attended by 94 persons representing 28 DPs.

NSDL conducts NCFM (NSE's Certification in Financial Markets - NSDL-Depository Operations Module) oriented training programmes for DPs to facilitate them for the NCFM examination. In July 2007, such programme was conducted in Mumbai, which was attended by 21 persons.

Securities and Exchange Board of India (SEBI) has issued a circular (No. MIRSD/DPS-III/Cir-9/07 dated July 3, 2007) regarding adequate internal controls for the branches of DPs. Extracts of aforementioned SEBI circular are as under:

• It has come to SEBI's notice that the Depository Participants (DPs) are operating through branch offices which are having Depository Participant Modules (DPMs) directly linked to the Depository server and branch offices which are connected through back offices software of the DP. Certain DPs are connected with the Depository through one or more DPMs. Some of the DPs have offline branches which function either as full fledged braches offering all DP services or only as collection centre.
• In terms of Regulation 46 of the SEBI (Depositories and Participants) Regulations, 1996, every DP shall have adequate mechanism for the purpose of reviewing, monitoring and evaluating its internal accounting controls and systems. Further, clause 19 of the Code of Conduct for Participants contained in the Third Schedule to the Regulations inter alia states that the DP shall ensure that it has satisfactory internal control procedure in place. It is clarified that these provisions apply to DPs in respect of all their branches also. DPs are therefore required in terms of these provisions to put in place appropriate mechanisms to ensure that their branches are carrying on the operations in compliance with the applicable regulations, bye-laws, etc. Further, DPs are also required to put in place suitable internal control systems to ensure that all branches are exercising due diligence in opening accounts, complying with KYC requirements, in ensuring systems safety in complying with client instructions, manner of uploading client instructions, in verifying signatures and in maintaining client records, etc. DPs shall also ensure that the branches are suitably integrated. The DPs whose systems do not measure up to the above are hereby advised to ensure such compliance immediately.
• Depositories shall examine the adequacy of the above mechanisms during their inspections of DPs. The Depositories shall also carry out surprise inspections/ checks of the DP branches apart from the regular inspection of the DPs.
• Depositories shall also put in place appropriate mechanisms for monitoring opening of branches by DPs."

This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0038 dated July 9, 2007.