Reliance To Await More Players In Depository

Reliance Industries managing director Anil Ambani announced yesterday that the company has not taken any decision regarding using the one-time investment facility of the National Securities Depository Ltd (NSDL).

"We are waiting for more competition in the depository business. We have yet to decide whether to opt for the facility of one-time payment of custody charges. We will take the decision at an appropriate time," he told newspersons.

RIL has about 50 lakh shareholders. NSDL charges about 0.02 per cent of the total value of shares as custody charges from depository participants. This would mean that if Reliance has to pay a one time custody charge, they would have to shell out a lot of money.

This decision implies that it expects custody charges to go down further. NSDL slashed custody charges in August from 3.5 basis points to 2 basis points.

RIL has an equity base of 90 crore shares. For holding shares of Rs 1 lakh, depository charges would amount to Rs 20.

An impressive first quarter performance from the company was not good enough to enthuse market players yesterday. On the BSE, the scrip closed at Rs 107.80, down Rs 7 over the previous close. On the NSE, the scrip lost Rs 5.95 over the previous close to end the day at Rs 106.80. The scrip clocked a trading volume of 73.73 lakh shares and 1.81 crore shares on the BSE and NSE, respectively.

"Since there has been a lot of institutional selling pressure, players are hesitant to get into the scrip despite the impressive performance," said a dealer.