In keeping with its stated stance of providing convenient, dependable and secure depository services to all classes of investors at a reasonable cost, Central Depository Services (India) Limited (CDSL) has reduced the transaction charge it collects from Depository Participants (DPs) to a flat fee of Rs. 5/- for debits.The reduced charge will be effective from January 1, 2006.

Since May 1, 2002, CDSL used to levy a “ranged” fee of 0.01% of the value of debit transactions (minimum Rs. 5/- and maximum Rs. 12/-). The present tariff reduction also addresses the aspiration of DPs who were in favour of a flat charge, which, they submit, makes computation of individual client bills easier.

During the first 8 months of the current financial year, CDSL has achieved significant progress on various parameters. During April-November 2005, CDSL has opened over 4.23 lakh new demat accounts. CDSL continues to attract applications for registration as DP. Already, in the first 8 months of the current financial year, 24 entities have received registration as CDSL DPs. Moreover, there are 4 others who have received in-principle approval and 37 DP applications under process. The applicants are from all parts of the country and include both banks and stockbrokers. CDSL is expected to soon cross the 300 mark in terms of registered DPs.