Kochi-based Geojit Securities Ltd, the only depository participant in Kerala, has decided not to charge account opening and dematerialisation fees in a bid to woo investors. Geojit Securities's managing director C J George said this facility would be available till April.The move follows the Securities and Exchange Board of India's (Sebi) decision to allow delivery of dematerialised shares in the physical mode. The the Securities and Exchange Board of India, in its review meeting with the working group on depository on Monday, also decided to make necessary amendments in the Depository Act to make trading in dematerialised shares mandatory. The new norms will be effective from April.
George said Geojit Securities had been charging Rs 300 as fee for openning an account and a dematerialisation fee of Rs 15 per share certificate from its clients.
The new Securities and Exchange Board of Indianorms would be a boon to the upcountry investors who could now avoid the trouble of sending share certificates toMumbai for getting them transferred. He said that according to the new norms, the local DPs could transfer the share certificate in favour of investors without any delay. Investors could also avoid paying 0.5 per cent stamp duty by joining the depository as members.
George said the concept of dematerialised trading was steadily catching up in Kerala and was likely to grow at exponential rate in the coming days. He said the number of investors who opened accounts with Geojit crossed the 1000-mark last month. These included certain local banks and financial institutions, he added.
The reason for the overwhelming response to demat trading in Kerala was the awareness of investors.
Moreover, the negligible fees charged by the depository participant also lured investors to this segment, he added. The broking firm has opened demat trading windows in all districts of Kerala.
It may be recalled that Kerala accounted for nearly 53 per cent of the demat shares of ICICI Bank, the first issue offered in the dematform. The State also topped in dematerialising Corporation Bank issue by accounting for over 51 per cent of the total demat shares.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
