In its bid to woo more investors to the capital market, the Securities and Exchange Board of India on Friday said that no charge should be levied on opening of a demat account except statutory charges effective from February 1.There would be no charge for credit of securities into investors' demat account and no custody charge would be levied on any investor who would be opening a demat account on or after February 1, SEBI said in a notification to the stock exchanges.
SEBI said with effect from April 1, the custody charges would not be levied on any investor. However, the depositories may levy and collect the charges towards custody from the issuers, on a per folio basis as at the end of the financial year.
The issuer has to pay annual custodial charge to respective depositories of Rs 4,000 for the nominal value admitted up to Rs 5 crore (Rs 50 million) and Rs 10,000 for admitted value between the range of Rs 5 -10 crore, SEBI said.
The annual custodial charges payable between the range of Rs 10-20 crore (Rs 100-200 million) and Rs 20 crore and above are Rs 20,000 and Rs 30,000 respectively, it said.
SEBI has advised all stock exchanges to implement the changes with immediate effect by making necessary amendments to the bye-laws and listing agreement.
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