Ministry : Securities and Exchange Board of India

Department / Board : Market Regulation Department

Circular No. : MRD/DoP/SE/Dep/Cir-4/2005

Date : 28.01.2005

Referred IN

To

1. The Executive Directors/Managing Directors/Administrators of all Stock Exchanges

2. The Managing Director, NSDL

3. The Executive Director, CDSL

Dear Sir/s,

1. Investors have been representing to SEBI seeking a reduction in the charges paid by them for dematerialisation of securities. The rationalization of charge structure for dematerialisation was discussed at the Secondary Market Advisory Committee of SEBI (SMAC).

2. After careful consideration of the recommendations of the SMAC, as a first step, it has been decided to rationalize the existing charge structure as under:

2.1 Effective from February 1, 2005 :-

a) 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;

b) No investor shall be required to pay any charge for credit of securities into his/her BO account; and

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

2.2 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: