CDSCDS infoline infoline The newsletter of Central Depository Services (India) Limited February 2002 Stakeholders Dear Investors and all our Associates, Bank of Baroda Passing of the Depositories Act in August 1996 was a significant milestone in the Bank of India history of Indian capital market. Clearly, it Bank of Maharashtra was a product of the reform process. Though, CDSL was a late entrant, CDSL's Centurion Bank Ltd. contribution in the success of demat trading HDFC Bank Ltd. is no way insignificant and it has demonstratively made the demat system more affordable to investors. Standard Chartered Bank State Bank of India In the past twelve months, CDSL has achieved substantial progress on all fronts be it technical, operational or expension of its network. Today, The Calcutta Stock Exchange CDSL has 167 registered depository participants offering demat at 336 Association Ltd. locations in 95 cities. CDSL has the largest number of companies admitted into its system. Number of instruments admitted in the CDSL The Stock Exchange, system exceeds 5300, which includes over 1100 debt instruments like Mumbai (BSE) debentures, bonds, mutual fund units, pass through certificates and commercial papers. Union Bank of India If 2001 was a year of consolidation for CDSL, the year 2002 would usher in streamlining of operational and technical systems, introduction of web based online transaction facility and admitting of government What’s inside? securities in the CDSL system. I am also delighted to inform you that, in its on-going disinvestment What’s new? programme, the Government of India has once again chosen CDSL for divesting its holding in Videsh Sanchar Nigam Limited. CDS today The recent decision of the Securities and Exchange Board of India (SEBI) to extend rolling settlement to all scrips as well as to shorten the CDS Associates settlement cycle to T+3 (trading date plus three days) will catapult Registrars Indian markets into the league of most advanced markets. We, at CDSL, Depository Participants are equipped to handle these changes. With the built in advantages Companies CDSL system offers, I am sure you will transact all your securities Stock Exchanges trading business through your CDSL account. B G Daga Managing Director For Private Circulation Only CDSL ..... Convenient. Dependable. Secure What's New? Union Bank of India (UBI), Depository Participant of Central Also present were Mr. V. V. Raut, Executive Director, CDSL, Mr. Depository Services (India) Limited (CDSL) launches "Union M. J. Hudli, Chief Manager, UWB, and other senior officials of Demat" : UBI, a leading public sector bank which has 2023 both organisations. UWB will now be offering the facility to open branches across the country, has launched "Union Demat" - demat accounts, and to hold and transact securities through CDSL, depository services exclusively through CDSL. The function was besides converting its own portfolio to demat form. UWB held at UBI's Mumbai Samachar Marg Branch on February 1, proposes to offer CDSL services from all its 37 branches in 2002. Shri V. Leeladhar, Chairman and Managing Director, UBI Mumbai, in a phased manner. These branches will be electronically connected to the main site of UWB at Mumbai, and later the facility will be extended to the other branches. UWB has a wide network of branches in Maharashtra and is working towards total networking and computerisation of its branches and offices. Sahara India Financial Corporation Limited (SIFCL) launches CDSL DP servcies: : SIFCL launched its CDSL depository services at its Goregaon(W) office in Mumbai, at a grand function held on December 15, 2001 . Shri Pallav Kumar, Deputy Director, SIFCL and Shri V.V.Raut, Executive Director, CDSL performed the inauguration. launched the Depository Services in the presence of Shri B. G. Daga, Managing Director, CDSL. Other senior officials of UBI and CDSL and a large number of customers were present at the launch. UBI is the first DP which has introduced instruction slips for on / off market transfers printed on security paper with the formats for all types of transactions in bilingual form. The services are presently available from the bank's Mumbai Samachar Marg branch, while other Mumbai branches of UBI will presently act as collection centres. UBI also plans to extend CDSL's services through its branches across the country. "No-delivery" Period Abolished: Market regulator, SEBI has directed the stock exchanges (Ref SMD/Policy/Cir-03/2002 The United Western Bank Limited (UWB) registers as DP of datedJanuary 30, 2002 ) to abolish the "no-delivery" period CDSL : UWB has obtained registration from Securities and facility on account of various corporate actions such as issue of Exchange Board of India (SEBI) to act as a Depository Participant dividend and bonus/rights shares in stocks that are traded under of CDSL. UWB signed an agreement to this effect with CDSL on compulsory dematerialised mode. January 7, 2002. The agreement was signed by Mr. S. T. Gadre, Managing Director, UWB, and Mr. B. G. Daga, Managing Early Pay-in : CDSL has recently introduced the facility to permit Director, CDSL, at a function held at CDSL's office at Mumbai. clearing members and/or investors to make early pay-in of securities. The facility will enable clearing members and the selling investor to reduce margin money payable. This early pay- in will involve transfer of securities from clearing member / beneficial owner to a designated account. Clearing members can obtain the account number of the designated account from the clearing house of the exchange / clearing corporation. Inter-city leased line connectivity : CDSL has obtained approval for establishing Close User Group (CUG) network thereby enabling inter-city leased line connections. Outstation DPs/RTAs who are currently connected to CDSL through V-Sat can shift to leased line connectivity, if they so desire. Queries if any regarding the above issues may be addressed at Mumbai to Mr.Allwyn Moraes (extn 8664), Mr.Prithwijit Dinda (extn 8626) on tel. no. 022-2723333, in Calcutta to Mr. Rajesh Bhattacharjee on tel. no. 033-5588782- and in New Delhi to Mr.Harsharan Singh Wadhwa on tel. no 011-6224005. 2 Visit us at www.centraldepository.com CDSL ..... Convenient. Dependable. Secure Companies having maximum overdue demat requests : In line Disaster Recovery Site : CDSL has shifted its Disaster with SEBI's press release Ref.No.PR 200/2001 dated November Recovery Site (DRS) to a new location at Navi Mumbai. The 21, 2001, a list of 100 companies with highest number of pending DRS has state-of-the-art facilities and redundancy features in demat requests beyond 30 days is being published regularly on terms of connnectivity media and electrical failures. Primary and our website www.centraldepository.com. The list can be accessed back-up electric supply is sourced from 2 separate suppliers. under the head "Companies with maximum overdue demat There is also Uninterrupted Power Supply system (UPS) back-up requests" on the home page of the website for 3 days. All data from the main site is replicated at the DRS . with a 15 minute time-lag, through a 2 MBPS leased line. Procedure for change of RTA : Issuer/RTA's are informed that Application synch after new releases is achieved within 48 hours for effecting change in RTA in the CDSL system the following documents should be submitted : Investor Seminars : CDSL, in association with The Stock v A fresh tri-partite agreement between the Issuer, new RTA and Exchange, Mumbai (BSE) and the Madras Stock Exchange CDSL. (MSE), conducted a series of Investor seminars in Tamil Nadu at v A "No-objection certificate' from the existing RTA, stating it Chennai, Karaikudi, Madurai, Salem and Coimbatore from has no objection to the change. December 14-18, 2002. The seminars recorded impressive v A certificate, giving information of the physical & electronic turnout from investors and were also attended by several shareholders which should include Clearing Members of MSE and their sub-brokers. MSE which is a) Total Issued capital a Depository Participant of CDSL, will shortly commence b) Balance under CDSL Folio opening and servicing demat accounts for retail investors c) Balance under NSDL Folio through an electronically-connected network of service centres d) Physical shares as per Register of Members covering various cities/towns in Tamil Nadu. v Either a practicing company secretary or practicing chartered accountant should certify the information. The said information should be provided to both the depositories on the same date and the information should not be more than 7 calendar days old. v A Cheque / Pay order / Demand Draft of Rs.5,000/- in favour of "Central Depository Services (India) Limited" payable at Mumbai. v The Issuer shall also advise the existing RTA to clear the pending demat requests. For further clarifications, kindly contact Mr.Sandeep Pathak (extn 8632) or Mr.Aashish Bajpai (8421) on tel no. 022-2723333 at Mumbai, Mr. Rajesh Bhattacharjee on tel.no. 033-5588782 at Calcutta and Mr.Harsharan Singh Wadhwa on tel. no 011- 6224005 at New Delhi. Compulsory rolling settlement : SEBI, in its Board meeting CDSL Holidays During The Calendar Year2002 held on May 14, 2001 has decided that "stocks which are not in the S.No Date Day Description compulsorily rolling settlement mode from July 2, 2001 will be 01. 26-Jan- 02 Saturday Republic Day brought under compulsorily rolling settlement with effect from 02. 23-Feb-02 Saturday Bakri-Id January 2, 2002" (Ref No. PR/220/2001 dated 19.12.2001). As on 03. 25-Mar-02 Monday Moharram July 02, 2001, 414 scrips had been brought under compulsory 04. 29-Mar-02 Friday Good Friday/Holi rolling settlement mode. SEBI has also decided that all scrips 05. 14-Apr-02 Sunday Ambedkar Jayanti listed on all the stock exchanges, would be traded only under 06.