NEST* RELEASE
NSDL announces reduction in Custody Charges
The Board of Directors of the National Securities Depository Limited (NSDL) today decided that the custody charges being charged by NSDL to the Depository Participant (DP) will be lowered from 3.5 basis points (0.035%) p.a. to 2 basis points (0.02%) p.a. with effect from October 1, 1998. This would mean that on a total custody value of Rs. 1,00,000/-, a DP will have to pay only Rs. 20 per year to NSDL. This decision has been taken in line with NSDL's policy that as the volumes grow, the custody charges are brought down. This is also the trend the world over. In fact, NSDL had earlier reduced the custody charge from 7 basis points to 3.5 basis points p.a. w.e.f. August 1, 1997. The Board took this decision after taking into account the fact that the dematerialisation process had gained substantial momentum during the last one year. NSDL hopes that the DPs will pass on the benefit of this reduction to the investors and as a result, investors will join the depository system on a larger scale especially in view of SEBI's announcement concerning compulsory demat trading from January 4, 1999.
J K Securities Pvt. Ltd. has become operational as the first Depository Participant from Anand, bringing the total number of Depository Participants to 62. Depository Participant services are now available from 393 service centres across the country.
As on August 25, 1998, 237 issuers have entered into agreements with NSDL to get their securities dematerialised. Amongst these, dematerialisation facilities are available for shares of 221 corporates. Bongaigaon Refinery & Petrochemicals Ltd., HCL Infosystems Ltd., Kotak Mahindra Finance Ltd., Nestle (India) Ltd., Novartis India Ltd., Sabero Organics Gujarat Limited, Shree Digvijay Cement Company Ltd. and UTI Bank Ltd. have signed agreements with NSDL to make their securities available for dematerialisation. Further, equity shares of E I Hotels Ltd., George Williamson (Assam) Ltd., Kotak Mahindra Finance Ltd., Novartis India Ltd., Shree Digvijay Cement Company Ltd., The Bishnauth Tea Company Ltd., Voltas Ltd. and Williamsom Magor & Co. Ltd. have been made available for dematerialisation.
As on August 21, 1998, more than 266 crore shares having a total value of about Rs. 41,704 crore have been dematerialised. Dematerialisation, as a percentage of the market capitalisation, crossed 20% for the following scrips
| 1 |
Infosys Technologies |
69.63 |
| 2 |
IndusInd Bank |
60.12 |
| 3 |
Wipro |
58.03 |
| 4 |
Praj Industries |
50.70 |
| 5 |
CRISIL |
50.11 |
| 6 |
Merind |
49.82 |
| 7 |
HDFC |
47.85 |
| 8 |
ICICI |
41.40 |
| 9 |
RIL |
36.73 |
| 10 |
HPCL |
31.20 |
| 11 |
BSES |
30.60 |
| 12 |
Larsen & Toubro |
27.32 |
| 13 |
Mahindra & Mahindra |
26.96 |
| 14 |
Krishna Filaments |
26.56 |
| 15 |
TISCO |
26.23 |
| 16 |
BPCL |
26.12 |
| 17 |
Gujarat Ambuja |
25.57 |
| 18 |
GE Shipping |
25.34 |
| 19 |
Ranbaxy |
24.78 |
| 20 |
Hindalco |
24.06 |
| 21 |
Shree Cements |
23.64 |
| 22 |
Grasim |
23.49 |
| 23 |
Usha India |
21.55 |
| 24 |
Tata Chemicals |
21.37 |
| 25 |
Dr. Reddy's Laboratories |
20.62 |
| 26 |
ACC |
20.33 |
Mumbai
August 25, 1998
NEST = * National Electronic Settlement and Transfer
