Issuers to pay more to depositories

Capital markets regulator the Securities and Exchange Board of India (Sebi) has decided to revise the annual issuers' charges with effect from April 1, 2009.

The depositories may levy and collect the charges towards custody from the issuers, on a per folio (ISIN position) basis as at the end of the financial year.

As per the revised schedule, issuers will now have to pay Rs 8 per folio subject to a minimum, from Rs 5 per folio earlier. Sebi has also revised the annual custodial fee payable by an issuer to each depository. The revision comes after the depositories made representations to Sebi .

The issuers would be required to pay custody charges to the depository with whom they have established connectivity based on the total number of folios (ISIN positions) as on March 31 of the previous financial year or the minimum amount, as the case may be, by April 30 of each financial year.

If they do not do so, depositories may charge penal interest subject to a maximum of 12 per cent per annum.