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NSDL has decided to revise its fee structure for the DPs ushering in a major change in the principle of levying fees. Since inception, NSDL has followed the principle of charging fees on ad valorem basis. As volumes in the depository system increased, NSDL regularly kept lowering the fees. As the settlement in the market has now been fully converted to paperless mode, NSDL feels that this is an appropriate time to revise the fee structure. In an automated environment, the requirement of computing infrastructure and its usage is unrelated to the value of transactions. Hence, it is logical to relate the fees to the number of transactions in respect of settlement fee and to the number of account positions as far as custody fee is concerned. Further, the movement to flat charges is a global trend as well. In view of the foregoing, NSDL has decided to change the basis of charging fees to the DPs, as given in the following para.

Custody fees which are presently being levied @ 0.01% of the value of securities subject to a ceiling depending on assets in custody with a DP, will now be charged @ Re. 0.75 per entry (ISIN) per month (i.e. Rs. 9/- per annum). Thus, if an investor holds shares of 5 companies in one account, he will be charged for 5 entries i.e. Rs.3.75 per month. An account that has no entry at all, will be charged, as if it has one entry i.e. Re. 0.75 per month. Settlement fee which is presently levied @ 0.02% of the value of securities for debit to an account will now be charged at a flat rate of Rs.15/- per debit instruction.

New Fee Structure

The new fee structure comes into effect from April 1, 2002.

At a meeting of the Working Group on Dematerialisation which was convened by SEBI on February 8, 2002 it was decided that prosecution will be launched against companies which are delaying demat requests sent by the investors. It was further decided that the depositories would issue a Press Release on a monthly basis about those companies which are delaying the demat requests.

In view of the difficulties faced by investors due to the delay in dematerialisation by the issuer companies and other related problems, it was decided that the in-house Registrar and Transfer work carried by the companies should be dispensed with. This clause will not apply to those companies, who are having their own electronic connectivity.

Unit Trust of India has vide its letter dated February 7, 2002 intimated NSDL that Participants should send the Transaction Statements in respect of US - 64 holdings alongwith the Repurchase / Redemption Request Form to UTI at the time of sending Repurchase requests for units under US-64 scheme. This has been informed to all Participants vide NSDL Circular No. NSDL/PI/2002/0249 dated February 11, 2002.

NSE has announced the dates and locations for conducting NCFM test, at places where NSE office is not located. This schedule has been announced for the period upto April 2002. The schedule is available on NSDL website on the page http:\\www.nsdl.co.in\certification\ncfmdata.xls. The test will be conducted at Chandigarh, Cochin, Baroda, Madurai, Coimbatore, Hubli and Nagpur.