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April 14, 2001
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Money > Business Headlines > Report April 14, 2001 |
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CDSL demats stocks of five PSUsBS Markets Bureau The Central Depository Services, promoted by the Bombay Stock Exchange, with other banks, has completed dematerialisation and transfer of the Central government's holding in five public sector units - Bharat Aluminium, SAIL Power Supply, Kochi Refineries, Chennai Petroleum and Bongaigaon Refineries. The value of these securities is put at Rs 19.27 billion. M G Damani, chairman and managing director of CSDL said: "We have emerged as the preferred platform for carrying out the actual share transfer transactions by the government." In 1999, CDSL had dematerialised and transferred a portion of government's holding in three oil majors as a part of its divestment programme in these entities. Around 29 million shares worth Rs 43 billion were involved in the deal. Damani added: "We are currently in talks with a number of public sector units for dematerialisation and carrying out the actual share transfer of government holding." CDSL has achieved a substantial progress in obtaining registration of depository participants. As on March 2000, the number of depository participants who have signed up with CDSL has increased to 158 from 61 in July 2000. The average number of shares settled through CDSL per settlement has risen from 112 million in July 2000 to 275 million in March 2001. Further, CDSL has a live presence in 72 places as against 35 places in the last four years. CDSL's charges are currently the lowest in the country. According to Damani, there is no rationale for levying a cost to the investor simply for holding shares in demat form. Hence, we as a part of this policy, will never charge custody fees. Ironically, this has led the other depository to benchmark itself against us and reduce its custody charge from 0.07 per cent to 0.01 per cent." Further, CDSL charges its depository participants half a basis point or 0.005 per cent on the value of a buy or sell transaction. Meanwhile, the holding of BSE in CDSL will come down to 37 per cent from 65.99 per cent, after the second round of divestment. Global Trust Bank of India, Standard Chartered Bank, Union Bank of India, Centurion Bank, Bank of Maharashtra, Oriental Bank of Commerce and Jammu & Kashmir Bank are picking up stake in the depository. Powered by ALSO READ:
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