Home
  What's New  
 
Ref No DCS/CIR/2005/1
February 7, 2005

To
The Company Secretary/Compliance officer,

Dear Sir,

Review of Dematerialisation Charges

SEBI vide its circular dated MRD/DoP/SE/Dep/Cir-4/2005 dated January 28, 2005 has rationalised the charge structure for dematerialisation of securities, as under:

I. Effective from February 1, 2005:

  1. No investor shall be required to pay any charge towards opening of a Beneficiary owner (BO) Account except for statutory charges as may be applicable;
  2. No investor shall be required to pay any charge for credit of securities into his/her BO account; and

  3. No custody charge shall be levied on any investor who would be opening a BO account on or after February 1, 2005.


II. With effect from April 1, 2005 the custody charges shall not be levied on any investor. However the Depositories may levy and collect the charges towards custody from the issuers, on a per folio (ISIN position) basis as at the end of the financial year, according to the table given below:

Issuers to pay @ Rs. 5.00(*) per folio (ISIN position) in the respective depositories, subject to a minimum as mentioned below:

Nominal value of admitted securities (Rs.)

Annual Custodial Fee payable by a Issuer to each Depository (Rs.) (*)

Upto 5 crore

4,000

Above 5 crore and upto 10 crore

10,000

Above 10 crore and upto 20 crore

20,000

Above 20 crore

30,000
*Plus service tax as applicable

The issuers would be required to pay custody charges to the Depository with whom they have established connectivity based on the total number of folios (ISIN positions) as on 31st March of the previous financial year or the minimum amount, as the case may be, by 30th April of each financial year failing which Depositories may charge penal interest subject to a maximum of 12% p.a.

You are requested to take note of the same and comply accordingly.



S.Miranda                                                                                                                         K. Gopalkrishnan
Asst. Gen. Manager,                                                                                                         Asst. Gen. Manager
Dept. of Corporate Services                                                                                                Dept. of Corporate Services

 		 

Back