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NSDL keeping in line with its policy of passing on the benefit of increasing volumes to the market from time to time has reduced its charge to the Depository Participants (DPs) for debit instruction from Rs.10/- to Rs.8/-, with effect from January 1, 2004. The corporate action fee payable by issuers has also been reduced from Rs.10/- per record to Rs.8/- per record.

SEBI vide its letter no. MRD/VSS/SU/24221/2003 dated December 22, 2003 has advised NSDL to intimate to its DPs to pass on the benefits of the reduction in charges for debit instructions to the beneficial owners. NSDL has advised its DPs to ensure compliance of the above vide NSDL Circular no. NSDL/PI/2003/2111 dated December 29, 2003.

NSDL, since its inception has reviewed its charge structure from time to time, in order to pass on the benefit of the increasing volumes to the market. The number of transactions have shown a steady increase in the recent times. Keeping in line with NSDL's policy of passing on the benefit of increased volumes to the market, NSDL has revised the fee structure with effect from 1st January 2004.

NSDL's charge to the DP's for debit instruction has been reduced from Rs. 10/- to Rs. 8/- i.e. a reduction of 20%. NSDL believes that the reduction will enable the DPs to reduce their charges to the investors. The Corporate Action Fee, payable by issuers, has also been reduced from Rs. 10/- per record to Rs. 8/- per record.

Shree Bahubali International Limited (Shree Bahubali), Depository Participant (DP) has subscribed to the SPEED-e facility of NSDL. Clients of Shree Bahubali can now avail the facility of submitting account transfer instructions through SPEED-e website.

Suvridhi Capital Markets Limited has been made operational as a DP on November 18, 2003. It will conduct its depository operations from Kolkata. The DP Id allotted is IN302855.

Pursuant to the acquisition of share registry division of Computech International Limited by MCS Limited (Registrar and Transfer Agent), its name has been changed from "Computech International Limited" to "MCS Limited", Kolkata.

This has been communicated to all DPs vide NSDL Circular No. NSDL/PI/2003/1903 dated November 29, 2003.

National Stock Exchange of India Limited has intimated to NSDL about revision in fees in respect of NSDL-Depository Operations Module (NSE's Certification in Financial Markets) from Rs. 500/- to Rs. 1,000/- per test. The revised fees will be applicable with effect from January 1, 2004, for a period of three years.

This has been communicated to all DPs vide NSDL Circular No. NSDL/PI/2003/1831 dated November 18, 2003.

NSDL has updated its 'Bye Laws and Business Rules' with amendments upto September 30, 2003. Copies of the revised Bye Laws and Business Rules can be downloaded from NSDL website www.nsdl.co.in. Printed copies can be obtained from NSDL offices upon payment of Rs. 100/- per copy.

NSDL has been approached by multi-commodity exchanges to provide depository facility for warehouse receipts. As legal status of warehouse receipts is different from that of securities, it is necessary for DPs to enter into a separate agreement with persons seeking to open a demat account for the purpose of holding and dealing in electronic warehouse receipts. DPs are free to add any more terms and conditions to the agreement to the extent they are not contradictory to the terms and conditions of the model agreement (Annexure B to the Bye Laws of NSDL).

The following points may be noted in this regard:

• Account opening procedure will remain same. All precautions and procedures for account opening, change in address, etc. as applicable to securities account shall be followed.
• Accounts opened under this agreement shall hold only electronic warehouse receipts and cannot be mixed up with other securities. DPs are requested to ensure this and if securities get credited into this account, they shall take necessary action to return the securities to the originating account.
  XDPs may make their own business/contractual agreement with the commodity exchanges/warehouse owners, as they deem fit, including terms and conditions related to collection of rent, etc. If DPs are required to collect any charges/tax/rent on behalf of commodity exchange / warehouse, DPs may have to ensure that such function has adequate legal basis.
• NSDL will issue circular relating to activation of Commodities Identifier [CID] (equivalent to ISIN) as and when such CIDs are activated in the system. The statement of transaction will contain CID-wise balances. Commodity descriptor will contain unit of measurement, for e.g.:- "(CID No.) Castor Seed Grade A , Ahmedabad ( in MTs)." MT = Metric Tonnes.
• Initial credit of electronic warehouse receipts into demat account will be effected by way of corporate action.
• Procedure for transfer, pledge and freeze will be the same as is applicable to securities.
• At the time of delivery, client will initiate rematerialisation request through the DP using the Remat Request Form (RRF). DP shall issue acknowledgment for receipt of the remat request by entering remat request (transaction) number on the acknowledgment portion and attest the signature of the client on the copy of RRF. Client will submit this acknowledgment and attested copy of RRF to the warehouse at the time of taking delivery.

The following charges will be levied by NSDL on the DPs towards demat services for warehouse receipts

This has been communicated to all DPs vide NSDL Circular No. NSDL/PI/2003/1882 dated November 27, 2003.