Anil Ambani Champions Depository Route

Reliance Industries managing director Anil Ambani has urged the finance ministry to ensure greater participation of companies in the National Securities Depository Ltd (NSDL). He has argued that routing transactions through the depositories would be particularly beneficial to small investors.

Reliance was one of the first companies to join the NSDL, when the depository went on stream late last year.

The timing of NSDL becoming operational was particularly opportune for Reliance, as it was faced with the prospect of the finance ministry upholding the suspension of its in-house registrar, Reliance Consultancy Service, in the share switch controversy. Given the volume of transactions in Reliance shares, few other registrars were equipped to take on the task.

 

Government officials confirmed that Ambanis letter had been received some time ago, but clarified that he had written the letter in an individual capacity and not in his professional capacity.

The officials said companies in most countries tended to move to the computerised share transfer mode after a one-year transitional period. NSDL has completed about six months.

According to the officials, it is time NSDL steps up dematerialisation of shares. They said the 2-3 per cent premium commanded by the transfer routed through NSDL should be a clinching point while wooing new participants.