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Pelf Finstock Limited has been made operational as a DP on September 2, 2004. It will conduct its depository operations from New Delhi. The DP Id allotted is IN302943.

This takes the total number of operational DPs to 218 and the total number of operational DPM set-ups to 289.

The following DP has subscribed to the IDeAS facility of NSDL in the month of August 2004:

• M.G.Capital Services Limited

This takes the total number of DPs who have subscribed to IDeAS to 60, inclusive of 31 DPs who have subscribed to SPEED-e.

Securities and Exchange Board of India (SEBI) has vide its Circular No. MRD/DoP/Dep/Cir-27/2004 dated August 16, 2004, clarified that DPs can be exempt from giving hard copies of transaction statements to the beneficial owners, if the DPs provide transaction statements and other documents to the beneficial owners under Digital Signature, as governed under the Information Technology Act, 2000, subject to the DP entering into a legally enforceable arrangement with the beneficial owners for the said purpose. The providing of transaction statements and other documents in the aforesaid manner would be deemed to be in compliance of the provisions of the Regulation 43 of SEBI (Depositories & Participants) Regulations, 1996. However, if the beneficial owners are still desirous of receiving statements in hard copy, the DPs shall be duty bound to provide the same.

DPs may implement the above subject to the conditions contained in SEBI circular as well as the condition that such transaction statements are provided to clients as per the frequency specified under the Bye Laws and Business Rules of NSDL.

This was intimated vide Circular No. NSDL/PI/2004/1514 dated August 24, 2004.

With a view to have better control over issuance and tracking/monitoring the usage of DIS, various guidelines issued by SEBI/NSDL have been consolidated vide Circular No. NSDL/PI/2004/1401. Detailed guidelines and related Circular is available on NSDL website www.nsdl.co.in. The key provisions include:

• All DISs must bear pre-stamped Client Id and pre-printed unique serial numbers.
• All DIS books must contain a Requisition form that should bear pre-stamped Client Id and a provision to attest the signature of the person whom the account holder wishes to authorise to collect the book on his/her behalf.
• Re-issuance of DIS book should strictly be on receipt of Requisition form duly signed by all account holder(s).

DPs had brought to the attention of NSDL that in cases where the demat request was pending for a long time and subsequently the investor had opted to close the account and hold the securities in physical form, DPs continued to provide transaction statements as per NSDL Bye Laws and Business Rules to such investors. DPs had requested for waiver from this requirement.

In this regard, NSDL has advised DPs vide Circular No. NSDL/PI/2004/1515 dated August 24, 2004 that they need not provide transaction statements to such Clients, subject to the following:

• The Client has requested the Issuer company to reject the dematerialisation request and return the physical securities to the Client directly.
• The Client is not interested in getting the securities dematerialised.
• The Client authorises the Participant to remove the standing instruction to receive credits in his/her account.
• Participant waives all charges viz. annual maintenance charges etc. on such accounts.