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NSDL has decided to reduce the settlement fee charged to the Depository Participants (DPs) from Rs.6 to Rs.5 per debit instruction. This means a reduction by 16% of the existing charges. This reduction will be effective from January 1, 2008.

It has always been the policy of NSDL to reduce charges with the growth in volumes and share the benefit of increased volumes with the users of Depository system. It has been NSDL's continued commitment to deliver cost effective services. NSDL had in the past reduced the settlement fee several times, the last reduction was from Rs.8 to Rs.6 in October, 2005.

The Karur Vysya Bank Limited has been made operational as a DP on November 8, 2007. It will conduct its depository operations from Chennai. The DP Id allotted is IN303382.

This takes the total number of operational DPs to 251 and the total number of DPM set-ups to 329.

The following DP has subscribed to the SPEED-e facility of NSDL in the month of November 2007:

• Canara Bank

Clients of the above mentioned DP can now avail of the facility of submitting various instructions through SPEED-e facility.

This takes the total number of DPs who have subscribed to SPEED-e to 76.

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 November 2007, one such programme was conducted in Panjim, Goa which was attended by 16 persons representing three DPs.

Financial Intelligence Unit-India (FIU- IND) had advised NSDL to incorporate following details:

• 'Financial status' and 'Nature of Business' of Client in the Account Opening Form (AOF).
• 'Consideration' and 'Reasons/Purpose' in Delivery Instruction Slip (DIS) used for Off-market transactions.

Accordingly, the AOFs for individuals as well as for corporates and DIS are revised to incorporate the aforesaid changes.

The DPs are allowed to use old AOFs & DIS till March 31, 2008 or till such time the old AOFs & DIS are exhausted, whichever is earlier. In the interim, DPs need to ensure that at the time of accepting existing AOF & DIS, for new account opening or for executing the transactions respectively, obtain the additional details as prescribed in the new / revised AOF & DIS on a plain paper duly signed by the applicant(s).

Further, DPs need to obtain the additional details as prescribed in the revised AOF for existing accounts whenever any existing account is identified in the alerts generated by NSDL or by DPs under the PMLA as specified by FIU-IND.

This has been informed to DPs vide Circular Nos. NSDL/POLICY/2007/0069 and NSDL/POLICY/2007/0071 dated November 12, 2007.

NSDL has been receiving requests from DPs regarding combined DIS for Account Transfer & Inter-Depository Instructions. Accordingly, NSDL has introduced a new / additional DIS viz., Annexure 'LA' i.e. 'COMBINED - DELIVERY INSTRUCTIONS BY CLIENTS'.

This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0072 dated November 23, 2007.

DPs are required to carry out 'in-person' verification of applicant(s) [Beneficial Owner(s)] at the time of opening depository accounts. In this regard, SEBI has advised:

• to observe strict compliance in conducting 'in-person' verification of Beneficial Owners at the time of opening demat accounts.
• to ensure that 'in-person' verification is carried out by the staff of the DP and to follow uniform procedures to ensure strict KYC compliance while demat accounts are opened with DPs.

NSDL has vide its Circular No. NSDL/POLICY/2007/0068 dated November 12, 2007 advised DPs to ensure strict compliance of the aforementioned requirement.