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The Board of Directors of the National Securities Depository Limited (NSDL) today decided that the custody charges being charged by NSDL to the Depository Participants will be lowered to 3.5 basis points (0.035%) p.a. with effect from August 1, 1997. At present, NSDL levies a custody charge of 7 basis points p.a. on the Depository Participants.

The Board took this decision after taken into account the fact that dematerialisation process had gained substantial momentum during the past 3 months and NSDL expects dematerialisation on a larger scale than anticipated earlier. NSDL hopes that the DPs will pass on the benefit to the investors and as a result, investors will join the depository system on a larger scale. This is in line with the Depository's policy to review custody charges from time to time as dematerialisation progresses.

The depository had also been considering the question of accepting a one time payment from companies and completely exempting custody charges on the shares of that company. M/s Infosys Technologies Limited have taken a lead in this matter and have agreed to pay to NSDL 5 basis points on its market capitalisation worked out in accordance with the average price of the 26 weeks prior to such agreement.

On this basis, the Depository will not charge any custody fees to the Depository Participants for the dematerialised shares of the company with effect from August 1, 1997. M/s Infosys Technologies Limited and NSDL hope that this will act as a substantial incentive for the investors to dematerialise their holdings in the company.

The Board further decided that a similar offer would be available to any company whose securities are available for dematerialisation with NSDL. Future issues by such companies would result in the payment requirement by the company at 5 basis points on the new capital created. The valuation for the new shares would be done at the issue price. Companies would not be required to pay any additional amount if they make a bonus issue.

Mumbai
July 21, 1997