NSDL slashes DP fees by 25% to Rs 6

Mumbai, August 1 | Updated: Aug 2 2005, 05:30am hrs
National Securities Depository Ltd (NSDL), has reduced the settlement fees and the corporate action fee charged to depository participants and issuers, respectively by 25%. The new settlement fee will be Rs 6 per debit instruction from the earlier Rs 8.

The corporate action fee charged to issuers has been reduced to Rs 6 per record from the earlier Rs 8 per record. The new rates will be effective from October 1, 2005.

Incidentally, NSDL has always followed the policy of reducing charges with the growth in volumes to share the benefit of increased volumes with users of the depository system. NSDL has in the past reduced settlement fee from Rs 10-Rs 8 on January 1, 2004. Further, no settlement fee for credits and no custody fee is payable by the investors.

In the last one year, 1.7 million new accounts have been opened with NSDL and total number of accounts have crossed 6.6 million. The total value of dematerialised securitues with NSDL is currently over Rs 16,80,000 crore or $380 billion.

The total number of depository participants (DPs) was pegged at 218 as on July 23, 2005 and there were 2,855 DP service centres. A total of 5,683 companies have joined the demat group.

NSDL, inaugurated in November 1996, is promoted by Industrial Development Bank of India (IDBI), Unit Trust of India (UTI) and National Stock Exchange (NSE). Some of the prominent banks like SBI, HDFC Bank, Dena Bank, Canara Bank, HSBC, Citibank NA and Standard Chartered Bank have also taken a stake in NSDL.