Deputy General Manager
Market Regulation Department
August 16, 2004
The Managing Director,
National Securities Depository Ltd.,
Trade World, 4th Floor,
Senapati Bapat Marg, Lower Parel,
Mumbai – 400013
The Executive Director,Central Depository Services(India) Ltd.,
Phiroze Jeejeebhoy Towers,
27-28th Floor, Dalal Street,
Mumbai – 400 023
Sub: Exemption of Depository Participants(DPs) from giving hard copies of transaction statements to Beneficiary Owners(BOs)
1. In terms of Regulation 43 of SEBI (Depositories & Participants) Regulations, 1996, every DP is required to provide statements of account to the BO in such form and in such manner and at such time as provided in the agreement with the BO.
2. Based on various representations received from the Depository Participants, it has been decided to permit the DPs to provide transaction statements and other documents to the BOs under Digital signature, as governed under the Information Technology Act, 2000, subject to the DP entering into a legally enforceable arrangement with the BO for the said purpose. The providing of transaction statements and other documents in the aforesaid manner would be deemed to be in compliance of the provisions of the Regulation 43 of SEBI (Depositories & Participants) Regulations, 1996. However if the BOs are still desirous of receiving statements in hard copy, the DPs shall be duty bound to provide the same.
3. The depositories are accordingly advised to ;
3.1 Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be necessary/applicable.
3.2 bring the provisions of this circular to the notice of the DPs of the Depository and also to disseminate the same on the website.
3.3 communicate to SEBI the status of the implementation.
4. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
V S SUNDARESAN