NEST* RELEASE
During the past three and half years of its operations, NSDL has revised its charge structure from time to time to pass on the benefit of higher volumes to the users of the depository. In line with this, NSDL has reviewed its existing charge structure once again and NSDL has decided to revise the charge structure further. Since the last reduction in July 1999, the transaction volume has increased substantially. At present NSDL has more than 28.5 lakh retail accounts and the value of the shares dematerialised has crossed Rs.376,000 crore as against 8.5 lakh investor accounts and Rs.1,50,000 crore demat value in July 1999. On an average 95% of the settlements on the major stock exchanges are carried out now in demat form as against 65% in the month of July 1999.
The new charge structure would be effective from September 1, 2000. The details of the revised charge structure are as follows.
NSDL charges 2 basis points on the value of net delivery given by a clearing member from the CM pool account to the clearing corporation (CC)/ Clearing House (CH) and 2 basis points on the value of net delivery received from the CC/CH to the CM pool account. It has now been decided to charge 2 basis points for only debits to the client account with no charge for the corresponding credit to any account. This would also apply to off-market transfers, which would mean a reduction of 50%. A fee of 0.2 basis points (0.002%) for transfer of securities from CC/CH to CM pool account subject to a minimum of Rs. 2000/- and a maximum of Rs. 20,000/- per quarter per CM will be charged. There will be no charge for the transfer of securities from CM pool account to CC/CH. Further, there will be a charge of 2 basis points for inter-settlement transfer in the CM pool account.
Existing charge of 10 basis points levied for invocation of pledge has been reduced to 2 basis points. However, there will be a charge of 1 basis point each for creation and release of pledge.
The remat charges have been reduced from 10 basis points or Rs 10 per certificate, whichever is higher, to 2 basis points or Rs.10 per certificate, whichever is higher.
The charges on stock lending has been reduced from 4 basis points to 2 basis points for transactions of periods up to 3 months and from 8 basis points to 4 basis points for transactions of period beyond three months.
At present, NSDL charges the issuing companies 4 basis points or Rs. 20 per record which ever is lower. This charge has also been reduced to 2 basis points or Rs. 20 per record which ever is lower.
There will be no change in any of the other charges such as annual fee, entry fee and custody fee payable by the participants.
Mumbai
July 20, 2000
NEST= * National Electronic Settlement and Transfer
