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Keeping in view the delay in dematerialisation and the possibility of non-reconciliation of share holding due to lack of proper co-ordination among the concerned agencies or departments of Issuers/ Registrars & Transfer (R & T) Agents, Securities & Exchange Board of India (SEBI) vide its Circular dated D&CC/FITTC/CIR-15/2002 dated December 27, 2002 has directed that all work relating to share registry of Issuers, in terms of both physical and electronic should be maintained at a single point i.e. either in-house by the company or by a SEBI registered R & T Agent. These instructions are required to be implemented latest by February 1, 2003. This has been communicated to the all Issuers/R&T Agents vide NSDL Circular No. NSDL/JS/061/2002 dated December 31, 2002.

SEBI vide its Circular No. D&CC/FITTC/CIR-17/2002 dated December 31, 2002, has directed all R & T Agents that:

• They shall maintain records of all the shares dematerialised, rematerialised and details of all securities declared to be eligible for dematerialisation in the depositories and ensure that dematerialisation of shares shall be confirmed / created only after an in-principle approval of the stock exchange(s) where the shares are listed and the admission of the said share with the depositories have been granted.
• They shall have proper systems and procedures in place to verify that the securities tendered for dematerialisation have not been dematerialised earlier.
• They shall ascertain, reconcile daily and confirm to the depositories that the total number of shares held in NSDL, CDSL and in the physical form tallies with the admitted, issued and listed capital of the issuer company; and
• They shall confirm that the dematerialisation requests have been processed within 21 days and shall also state the reasons for shares pending confirmation for more than 21 days from the date of request.

This has been communicated to the all Issuers/R & T Agents vide NSDL Circular No. NSDL/JS/001/2003 dated January 1, 2003.

SEBI vide its Circular No. D&CC/FITTC/Cir-16/2002 dated December 31, 2002 has directed that all the Issuer companies shall subject themselves to a secretarial audit to be undertaken by a qualified Chartered Accountant or a Company Secretary, for the purpose of reconciliation of the total admitted capital with both the depositories and the total issued and listed capital. This has been communicated to all Issuers/R & T Agents vide NSDL Circular No. NSDL/JS/002/2003 dated January 2, 2003.

Reserve Bank of India (RBI) vide its Press Release: 2002-2003/749 dated January 16, 2003, has informed that, in order to facilitate easier access and wider participation in the government securities markets, a facility is being provided to buy and sell government securities through the stock exchanges. This facility will be in addition to the present system of dealing in government securities. To begin with, all outstanding and newly issued Government of India dated securities would be traded on the eligible stock exchanges with effect from January 16, 2003. Other eligible securities like State Government Bonds and Treasury Bills would be added in phases. SEBI has permitted National Stock Exchange (NSE), Mumbai Stock Exchange (BSE) and Over the Counter Exchange of India (OTCEI) as eligible exchanges to provide such trading platform. Like equities, the government securities would be traded on the permitted exchanges on a T +3 rolling settlement basis. The Honorable Union Finance Minister inaugurated retail trading in Government Securities by initiating the first deal on January 16, 2003. Government Securities will be traded in a minimum of Rs.1000 (face value), i.e., 10 units of the face value Rs. 100 each and multiples of Rs. 1000.

Vijaya Bank has been made operational as a Depository Participant (DP) on January 14, 2003. It will conduct its depository operations from Bangalore. The DP Id allotted is IN302806.

This takes the total number of operational DPs to 213.