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Securities and Exchange Board of India (SEBI) vide its letter No. D&CC/NSDL-CDSL/3524/2003 dated February 12, 2003 has informed that, in the meeting of the Working Group on Dematerialisation, it has been decided that simultaneous transfer cum demat scheme shall henceforth be applicable for shares upto 500 (in number) only. This has been communicated to all Depository Participants (DPs) vide NSDL Circular No. NSDL/PI/2003/0268 dated February 17, 2003. This has also been communicated to all Issuers/R & T Agents vide NSDL Circular No. NSDL/JS/005/2003 dated February 17, 2003.

SEBI, vide its Circular No.D&CC/FITTC/CIR-15/2002 dated December 27, 2002, had directed that all the work relating to share registry 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 were required to be implemented latest by February 1, 2003.

SEBI vide its Circular No. D&CC/FITTC/CIR-18/2003 dated February 12, 2003 has extended the above time upto March 31, 2003 for compliance. Further, SEBI has advised the companies to furnish a copy of compliance certificate latest by April 7, 2003 to the stock exchanges and depositories. SEBI has also stated that this extension of time is being granted as a one-time relief measure and any non-compliance of the circular would invite appropriate penal action under the provisions of the relevant Acts and Regulations. This has been communicated to all Issuers/R & T Agents vide NSDL Circular No. NSDL/JS/008/2003 dated February 18, 2003.

Reserve Bank of India (RBI) has, vide its letter no. IDMC No. 3212/10.26.65 / 2002-03 dated February 6, 2003 has informed NSDL that the Department of Banking Operations and Development (DBOD) vide its circular dated January 16, 2003 has enabled banks to trade in government securities on the stock exchanges. RBI has further informed that the government securities maintained by the banks with the depositories will be included for Statutory Liquidity Ratio (SLR) purposes and SLR is required to be maintained on a daily basis. In view of this, Transaction Statements should be provided by DPs to their banking Clients as of every Friday giving details of the securities held by them on each day of the week. NSDL vide its Circular No. NSDL/PI/2003/0308 dated February 22, 2003 has advised DPs to provide Transaction Statements to their bank Clients, so as to enable them to comply with the requirements of RBI.

DPs have been representing to NSDL that they are not in a position to process the requests received from their Clients to close their accounts due to request(s) for dematerialisation pending disposal for a long time by the concerned Issuer company and/or its Registrar & Transfer Agent. In order to help such Clients to close their accounts, DPs can advise their Clients as under:

• Write a letter to the Issuer (with a copy marked to its DP and respective Registrar & Transfer Agent), requesting for rejection of the pending dematerialisation request(s) and send fresh physical security certificate(s) to the Client directly.
• Enclose a copy of the dematerialisation request generated from DPM system, duly signed & stamped by the DP, alongwith the aforesaid letter to the Issuer.
• On receipt of copy of the letter from the Client, the DP may also take up the matter with the concerned Issuer and/or its Registrar & Transfer Agent for rejecting the instruction expeditiously. After the pending dematerialisation request(s) is/are rejected by the Issuer and/or its Registrar & Transfer Agent, the DP can close the account of such Client.

This has been communicated to all DPs vide NSDL Circular No. NSDL/PI/2003/0309 dated February 22, 2003.