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Arch Finance Limited has been made operational as a DP on
April 16, 2008. It will conduct its depository operations from
Delhi. The DP Id allotted is IN303403.

Quantum Global Securities & Leasing Co. Ltd. has been made operational as a DP on April 29, 2008. It will conduct its depository operations from New Delhi. The DP Id allotted is IN303411.

The above additions take the total number of operational DPs to 253 and the total number of DPM set-ups to 332.

SEBI, vide its letter no. F.No.47-2006/ISD/SR/122539/2008 dated April 4, 2008 and subsequently in the meeting held with both the Depositories and Stock Exchanges on April 15, 2008, has clarified that 'in-person' verification of BOs at the time of account opening should be carried out by the DP staff only.

In view of the above, NSDL has advised its DPs to observe strict compliance of the same and ensure that 'in-person' verification of BOs at the time of opening demat accounts is carried out by the DP staff only. If DPs find that carrying out 'inperson' verification of Non-Resident Indians (NRIs) / Foreign Nationals (FN) is infeasible, then in such cases, they should obtain from the NRI/FN Clients KYC documents (proof of identity and proof of address) attested by any one of the following entities viz; Notary Public, Court, Magistrate, Judge, Local Banker, Indian Embassy / Consulate General of the country where NRI/FN is residing [outside India].

In cases where 'in-person' verification was not carried out by staff of the DP in respect of demat accounts opened from April 2006 till February 2008 or any such cases subsequently, DPs have been advised to carry out 'in-person' verification of Clients by their own staff and submit a certificate in this regard to NSDL duly certified by the Compliance officer on or before August 31, 2008, as advised by SEBI.

This has been informed to DPs vide Circular No. NSDL/POLICY/2008/0030 dated April 30, 2008.

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:

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 April 2008, such programme was conducted in Chennai which was attended by 34 persons.

RBI Intimation - Updation of new bank account numbers

Reserve Bank of India (RBI) vide its letter no. DPSS (CO) No. 1432 / 04.03.02/2007-08 dated March 12, 2008 has informed NSDL about allotment of new bank account numbers by banks who have implemented Core Banking Solution (CBS) and the need to update the same in demat accounts by DPs. The relevant extract from the letter of RBI is reproduced herewith:

"Retail electronic payment system such as Electronic Clearing Services (ECS) and National Electronic Funds Transfer (NEFT) are being used extensively for payments of IPO refunds by IPO managers, since these electronic payment products facilitate direct, speedy and secured credit of funds to the investors' accounts.

However, of late, we have been receiving complaints from the managers to the issues that funds routed through the electronic modes are getting returned by the destination banks. We further observe that such returns are mostly due to providing incorrect or old account numbers of the beneficiary customers.

As you may be aware, most of the banks have operationalised their Core Banking Solution (CBS) and new account numbers have been allotted to customers under CBS. Majority of banks are posting their inward electronic transactions in Straight Through Processing (STP) manner. Due to this seamless processing, truncated or old account numbers, if any, are being rejected by the system leading to manual intervention at bank's end. In order to avoid manual intervention, all customers are required to update their account numbers with their respective depositories."

In view of the aforesaid, NSDL has advised all its DPs to inform their Clients to provide the new bank account details in case of change in the existing bank account details. Updation of correct bank particulars of the Clients would facilitate receipt of IPO refunds, dividend, redemption payments etc., into correct bank account of the Clients.

This has been informed to DPs vide Circular No. NSDL/POLICY/2008/0022 dated April 7, 2008.

As investors are aware, NSDL's SMS Alert facility for demat account holders enables investors to receive alerts for debits (transfers) to their demat accounts and credits in respect of corporate actions for IPO and offer for sale. With effect from April 15, 2008, SMS Alert facility for demat account holders has been further enhanced. Investors can now receive alerts in respect of debit instructions failed on account of insufficient balance.

The text of SMS alerts being sent to the account holders for the aforesaid purpose is as follows:

“Ur reqst for transfer of ______ (number of shares) shares of ____________ (Company Name/ISIN as the case may be) from demat a/c no_________ (Client ID) on __________ (date, dd/mm/yy) has failed due to insuff bal. Contact ur DP for details.NSDL”

Based on the representations made by DPs who have subscribed for SPEED-e, NSDL has extended the deadline time for submission of instructions (pertaining to pay-in) by Clients on SPEED-e on the pay-in day, with effect from April 28, 2008. This has been informed to DPs vide Circular No. NSDL/POLICY/SPEED-e/2008/0004 dated April 23, 2008. The text of the circular is posted on NSDL website www.nsdl.co.in.

IIT Corporate Services Ltd. (IIT Corp) (DP Id IN300046), a DP of NSDL has informed NSDL about closing down its depository operations.

Clients of IIT Corp are requested to get their securities transferred to the account opened with any other DP or get them rematerialized.

Pratik Stock Vision Private Limited (PSVPL) (DP Id IN302033), a DP of NSDL has informed NSDL that it intends to close down its depository operations.

Clients of PSVPL are requested to get their securities transferred to the account opened with any other DP or get them rematerialized.