Spot Rupee Stays Range-Bound

Bank of Baroda (BoB) launched its depository services here yesterday as a depository participant of National Securities Depository Ltd (NSDL).

According to K Kannan, chairman and managing director of the bank, the depository services will soon be extended to other cities. Initially, this facility will only be available in Mumbai. He expressed confidence over the quality of service that can be expected of the trained staff, terming it as a key element of this new venture.

The bank is banking on its competitive pricing as a selling proposition. They propose to charge 0.07 per cent fee on a purchase transaction and 0.02 per cent fee on a sale transaction. However, both will be subject to a minimum charge of Rs 25.

Dematerialisation of shares will be charged at Rs 2 per certificate up to one thousand certificates per company. For larger volumes Re 1 per certificate is the charge. The remat charges will be Rs 20 per certificate.

According to H K Arora, chief manager depository services, prospects in this field seem to be bright as 148 accounts have already been opened reflecting investor confidence. He expects these services to spread in Gujarat and Maharashtra after three or four months. He said adequate infrastructure has been set up to take care of requisite electronic linkages.