GENERAL MANAGER

MARKET REGULATION DEPARTMENT

MRD/Dep/Cir- 20/06

December 11, 2006

The Chairman and Managing Director,

National Securities Depository Limited,

Trade World, 4th Floor,

Kamala Mills Compound, Lower Parel,

Mumbai-400013
The Managing Director & Chief Executive Officer,

Central Depository Services (India) Limited,

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Phiroze Jeejeebhoy Towers,

17th Floor, Dalal Street, Fort

Mumbai – 400 023

Dear Sir/s,

Sub: Dissemination of tariff/charge structure of Depository Participants

1. As per Section 11(2) (f) of the Securities and Exchange Board of India Act, 1992, SEBI is empowered to undertake such measures as it deems fit to promote investors’ education. One of the measures being undertaken to promote investors’ education has been the dissemination of vital information in the public domain to enable the investors to take an informed decision.

2. Pursuant to the representations received from the investor community and after having consultations with the market participants, SEBI vide Circulars dated January 28, 2005 and November 9, 2005 rationalised the cost structure in the dematerialised environment. Further to this, investors have been representing to SEBI stating, inter-alia, that the tariff/charge structure of the various Depository Participants (DPs) is not easily available for comparison so as to enable them to take an informed decision with regard to availing of the services of a particular DP.

3.   In order to facilitate comparison of DP tariff/charge structure, it has been decided that DPs must submit to their depository the tariff/charge structure every year, latest by 30th April, and also inform the depository the changes in their tariff/charge structure as and when they are effected.

4.  The depositories shall put in place necessary systems and procedures including formats, periodicity, etc. for collection of necessary data from the DPs and dissemination of the same on their website which would enable the investors to have a comparative analysis of the tariff/charge structure of various DPs.

5.  The depositories are accordingly advised to:

a.make necessary amendments to the relevant bye-laws and business rules for the implementation of the above decision immediately, as may be necessary/applicable.

b.  bring the provisions of this circular to the notice of the DPs of the depository and to disseminate the same on their website.

c.  communicate to SEBI the status of implementation of the provisions of this circular in the Monthly Development Report.

6.  This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities.

Yours faithfully,

V S SUNDARESAN

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