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National Securities Depository Ltd. (NSDL) has signed a Memorandum of Understanding (MOU) with The Depository Trust & Clearing Corporation (DTCC), a US Depository, to forge closer ties between the two organizations. Under the terms of the MOU, NSDL and DTCC will establish a mechanism to increase mutual understanding and exchange market updates, improvement opportunities and information on business operating models.

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for 2.8 million securities issues from the United States and 100 other countries and territories, valued at $36 trillion. Last year, DTCC settled more than $1.5 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas.

Equi-Derive India Private Limited has been made operational as a DP on June 4, 2007. It will conduct its depository operations from Kolkata. The DP Id allotted is IN303323.

This takes the total number of operational DPs to 245 and the total number of DPM set-ups to 323.

IDeASfacility has been made mandatory for all the DPs. Thus, all clients can now avail of IDeAS, which 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 Mumbai, Chennai, New Delhi and Kolkata for compliance officers of DPs. Areas covered during the training programmes were compliance requirements, inspection and internal audit. These programmes were conducted in Mumbai, Chennai, New Delhi and Kolkata on June 8, 15, 22 and 29, 2007 respectively, which were attended by 93 persons representing 65 DPs.

NSDL conducted NCFM (NSE's Certification in Financial Markets - NSDL-Depository Operations Module) oriented training programmes for DPs to facilitate them for the NCFM examination. The programmes were conducted in Mumbai, Chennai, New Delhi and Kolkata on June 9, 16, 23 and 30, 2007 respectively, which were attended by 53 persons representing 28 DPs.

A new sub-type "Margin Account" is added under Client types 'Resident' and 'Body Corporate' to enable Clearing Members (CMs) to open beneficiary accounts to hold securities for client margin purposes. While opening such accounts, DPs are required to obtain an undertaking from the Clearing Members/Brokers that the said beneficiary account(s) are opened for the sole purpose of holding and transacting for client margin purposes and no other securities will be held/transacted in the said account.

This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0029 dated June 15, 2007.

(a) Change of address in case of non-body corporate accounts:

In case a Client (sole holder or either of the holders) personally visits the DP's office to submit an application (signed by all holders in case of joint holdings) for change of address alongwith necessary documents (proof of identity / proof of address), the DP need not obtain the transaction statement from that Client.

(b) Change of address with respect to Corporate Accounts:

As one of the authorised signatories is required to personally visit DP's office, the DP need not obtain transaction statement from the authorised signator(ies).

(c) Change of signature:

Since the Client in case of change in his/her signature is required to personally visit the DP's office, the DP need not obtain the transaction statement from that Client.

(d) SPEED-e and IDeAS :

In case of SPEED-e and IDeAS, if a Client [sole holder or either of the holders who is authorised on behalf of the other holder(s) to operate SPEED-e or IDeAS] personally visits the DP's office to submit an application (signed by all holders in case of joint holdings) for the following cases, the DP need not obtain the transaction statement from the Client.

SPEED-e : (i) Registration of password based User (ii) Addition to pre-notified accounts and (iii) Resetting of password.

IDeAS : (i) Registration of password based User and (ii) Resetting of password.

(e) Requisition for Loose leaf DIS :

In case of requisition for loose leaf DIS, if the Client personally visits DP's office and signs (all the holders in case of joint holdings) the DIS in the presence of the authorised official of DP, the DP need not obtain transaction statement from such Client(s). In this regard, DPs will also have to ensure compliance with SEBI guidelines regarding safeguards to be followed to address the concerns of the investors in case of transfer of securities in dematerialized mode.

In case the authorised representative of the Client visits DPs office to submit the application, the requirement of obtaining transaction statement from the Client will have to be followed as per the procedures laid down.

The above exemptions have been informed to DPs vide Circular No. NSDL/POLICY/2007/0030 dated June 18, 2007.

Securities and Exchange Board of India (SEBI) vide its Circular No. MRD/DoP/Cir-08/2007 dated June 25, 2007 has communicated its decision to discontinue with the requirement of Unique Identification Number (UIN) under the SEBI (Central Database of Market Participants) Regulations. Extracts of aforementioned SEBI circular are as under:

• As you are aware, SEBI vide circular No. MRD/DoP/Cir- 05/2007 dated April 27, 2007 has made PAN the sole identification number for all participants in the securities market, irrespective of the amount of transaction.
• In light of the above, it has been decided to discontinue with the requirement of Unique Identification Number (UIN) under the SEBI (Central Database of market Participants Regulations), 2005 (MAPIN regulations)/circulars."

This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0033 dated June 27, 2007.