MANU/SDEP/0010/2015
Ministry : Securities and Exchange Board of India
Department/Board : Market Regulation Department
Circular No. : CIR/MRD/DP/18/2015
Date : 09.12.2015
Notification/ Circulars Referred : Circular No. MRD/DoP/SE/Dep/Cir-4/2005 dated January 28, 2005 MANU/SSMD/0010/2005;Circular Nos. MRD/DoP/SE/Dep/Cir-2/2009 dated February 10, 2009 MANU/SSMD/0004/2009;CIR/MRD/DP/05/2011 MANU/SSMD/0010/2011
Citing Reference:
Circular No. MRD/DoP/SE/Dep/Cir-4/2005 dated January 28, 2005 MANU/SSMD/0010/2005 Referred
Circular Nos. MRD/DoP/SE/Dep/Cir-2/2009 dated February 10, 2009 MANU/SSMD/0004/2009 Referred
CIR/MRD/DP/05/2011 MANU/SSMD/0010/2011 Referred
To,
The Depositories
Dear Sir/ Madam,
Review of Annual Custody / Issuer Charges
1. SEBI vide circular No. MRD/DoP/SE/Dep/Cir-4/2005 dated January 28, 2005 has allowed the custody/issuer charges to be collected by the depositories from the issuers in the manner specified therein. Subsequently, the charges and the methodology were revised vide Circular Nos. MRD/DoP/SE/Dep/Cir-2/2009 dated February 10, 2009 and CIR/MRD/DP/05/2011 dated April 24, 2011 respectively.
2. The Depository Systems Review Committee (DSRC) has, with an objective of promoting financial inclusion and expanding the reach of depository services to tier II and tier III towns, recommended that the revenue source of the depositories may be augmented and Depository Participants (DPs) may be incentivized by having a revenue sharing mechanism between depositories and DPs. It has also suggested that the annual issuer charges may be enhanced and the incremental revenue be shared suitably by the depositories with their Participants for promoting the Basic Services Demat Accounts (BSDA) and opening new accounts in tier II and tier III towns.
3. Af........