NSDL News
Two way fungibility of ADRs/GDRs
NSDL has vide its Circular No. NSDL/PI/2002/0846 dated May 29, 2002 informed that a new sub-type "DR" has been added to the client types viz.; 'Non Resident Indian', 'Foreign Institutional Investor', 'Corporate Bodies', 'Corporate Bodies - Foreign Bodies' and 'Foreign National'. This new sub-type is for the purpose of enabling investors to separately hold equity shares issued upon cancellation of Depository Receipts (GDR/ADR) held by them. Further, the existing account holders under client type 'Foreign National' have been categorised under the sub-type "FN". In this context, following guidelines have been issued:
- In order to receive the securities issued upon cancellation of the Depository Receipts (DRs) held by the investors, a separate account with sub-type "DR" will be opened under the relevant client type/category and only such securities will be credited in this account.
- The standing instruction facility would not be enabled for accounts with sub-type "DR". The Clients will have to give specific receipt instructions to the Participants for receiving securities issued upon cancellation of DRs.
- The sub-group of Custodians, Companies, Registrars and Depositories formed by SEBI on the issue of finalising the Operative guidelines for the limited two way fungibility under the "issue of Foreign Currency Convertible Bonds and Ordinary shares (Through Depository Receipt Mechanism) Scheme, 1993" decided that all securities corresponding to the DRs cancelled upto May 31, 2002 but not sold, should be transferred to the account opened under the new category by the concerned Client, by June 30, 2002.
Further clarification as regards account opening has been issued vide Circular No. NSDL/PI/2002/0899 dated June 7, 2002. The circular clarifies that since the Client has already been identified by the Participant, a separate agreement for this new account may not be required. However, the Participants must ensure that the Client gives a letter mentioning its intention to open a separate account for holding DR-cancelled securities and that it will be bound by the agreement it had earlier signed with the Participant.
Withdrawal of GTL Limited ( formerly Global Telesystems Limited) from Onetime custody fees scheme
GTL Limited has withdrawn from the scheme for onetime payment of custody fees. Accordingly, custody fee will be levied in respect of the equity shares of GTL Limited w.e.f. June 1, 2002.
New ISIN structure for Government Securities (G-Secs)
Pursuant to the commencement of Negotiated Dealing System, RBI has prescribed a new ISIN structure for G-Secs. Accordingly, new ISINs corresponding to the ISINs in NSDL for G-Secs have been substituted and the balances held under the old ISINs have been transferred to the new ISINs on May 29, 2002 by way of Automatic Corporate Actions (ACAs).
