Mumbai, Feb 27: As many as 17 depository participants (DPs) have decided to waive off account-maintenance charges for a period of one year and account-opening charges up to May 15.Three bank DPs have decided to come out with a special offer for brokers. Brokers who introduce 50 clients to these DPs will not be charged any transaction fee for a year.
Moreover, broker DPs will reduce their brokerage by 10 basis points if the client conducts his transactions and opens a depository account with them.The 17 DPs who have conveyed their decision to National Securities Depository Ltd (NSDL) are Kotak Securities, Action Financial Services, Alankit Assignments, Abhipra Capital, Dayco Securities, IDBI Capital Markets, East India Securities, Geojit Securities, Mafatlal Securities Ltd, Mercantile Securities Ltd, Karvy Consultants Ltd, Dalmia Securities, SS Kantilal Ishwarlal, UTI Securities, Canara Bank, IndusInd Bank and Global Trust Bank.
The measures have been proposed to increase the number of depositoryaccounts ahead of the April 6 deadline, when demat shares would be allowed to be delivered in the physical segment as well.
According to sources, as on Friday these DPs have formally informed the NSDL of their decision to go ahead with the latter's request of not charging investors for opening accounts and/or any other charges till such time that he continues to maintain a zero balance in his depository account.
It is learnt that another five DPs would take a decision in this regard over the next few days. The depository has not targeted the custodian DPs as they are not targeting the retail investors at all.
Currently, about nine DPs do not offer their services to the retail investors and are hence not expected to offer any package.
"Apart from three DPs, all the remaining who charge account-opening charges and account-maintenance fees have decided to do away with these. The account-opening charges would be waived off till May 15 while the account-maintenance charge would not be charged for a year,"said a source.
They would also not charge any security deposit and any other charges till the first credit is made into the account of the investor.
The three bank DPs have also decided not to charge any transaction fee from the clearing members of stock exchanges for a year if they get 50 clients to open accounts with them. The depository currently charges 5 basis points on every buy transaction and the DPs mark up a certain additional charge.
Post April 6, there is a possibility that an investor may get shares in demat form without his choice and, hence, it is imperative for any investor to at least have an account so that these shares can be credited to his account.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
