The depository is also taking a lead in increased transparency by announcing the quarterly financial result from the quarter ending December 2000.

Speaking to The Financial Express, CDSL chairman and managing director MG Damani said we intend to offer shares worth Rs 2.5 lakh of Rs 10 each to all the DPs. The board of CDSL is expected to take a decision on the matter later this month and after the approval of the board, the depository promoted by Bombay Stock Exchange along with some banks will approach the Securities and Exchange Board of India (Sebi) for its permission.

"CDSL board decision is required to amend the existing by-laws of the company as the present by-laws does not allows DPs to become shareholders," Mr Damani said.

As part of the retaining its manpower CDSL plans to offer Esops and would be writing to the market regulator to make suitable amendments in the SEBI (Depositories & Participants) Regulations, 1996. At present the paid-up capital of CDSL is Rs 101 crore and is expected to increase to Rs 143 crore after some banks become shareholders.

He said there are 131 DPs at present, which is expected to increase to 1,000 by March 2002. The CDSL chairman further stated that the depository is making every effort for increased transparency and as part of the plans would make public its maiden quarterly financial results for the period October-December 2000.

"Disclosure should not be restricted to only companies mobilising money but should be for other companies like depository as saving of investors in the form of shares are with us," he stated. With disclosure of the financial statements to the investors there would be transparency so that investors know the financial health of depository in which they have deposited their securities.