The Hindu Business Line : SEBI hikes custodial fee for companies from April

Mumbai, Feb. 10 Capital markets regulator SEBI on Tuesday increased the annual custodial fees payable by companies to depositories NSDL and CDSL, effective from the next fiscal.

The fees payable at various slabs (set according to value of securities) have been increased by at least 50 per cent.

NSDL and CDSL are the two national depositories that maintain the databases for all the securities listed in the domestic equities market.

With effect from April 1, the issuers have to pay Rs 8 for a folio (ISIN position) against the Rs 5 paid earlier to the respective depositories, subject to a minimum amount for the nominal value of admitted securities, said a SEBI circular.

Folio

A folio represents a lot of shares held by one shareholder; each folio is assigned a specific ISIN number.

“The charges have been revised upward in the light of representations received from the depositories,” said the SEBI circular.

For the depositories, the system enhancements required to be made from call for increased expenses. At the same time, their income has been affected in the current market situation, said an official with one of the depositories.

FEE SLABS

In terms of nominal value of admitted securities, an issuer will now have to pay Rs 50,000 as against Rs 30,000 paid earlier for nominal securities of more than Rs 20 crore in value, the circular said.

Corporates having issued securities of nominal value above Rs 10 crore and up to Rs 20 crore will now pay Rs 30,000 instead of Rs 20,000.

For securities of nominal value above Rs 5 crore and up to Rs 10 crore, the fees will now be Rs 15,000 as against Rs 10,000; and for securities of up to Rs 5 crore, the fee will be Rs 6,000 as against Rs 4,000.

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