NSDL Fees and Charges

NSDL (National Securities Depository Limited) offers clearing members and investors with depository services. These services are provided through Depository Participants (DPs). The DPs play the role of intermediaries in market. No charges apply to investors directly by NSDL. But the body charges its DPs, who on the other hand have their own set of fee structure for customers/clients. The fees by National Securities Depository Limited is even for all the depository participants, while a few charges also apply to issuers and other users.

In this post, we will discuss about fees and charges by NSDL for depository participants, issuers, and other users, along with frequently asked questions.

NSDL Fees and Charges to Depository Participants

Here is a list of National Securities Depository Limited charges and fees for Depository Participants:

Services	Fees/Charges
Entry/application fee	Rs. 25,000 non-refundable
Annual maintenance for Client Securities Margin Pledge Account (other than corporate account)	Every year Rs. 500 per Client Securities Margin Pledge Account
Annual maintenance for corporate accounts	Every year Rs. 500 per corporate account
Pledge (for hypothecation/creation of pledge)	Per instruction Rs. 25 No charges on invoking/closing pledge/hypothecation
Hold on Securities for NDU (Non-Disposal Undertakings/Agreement)	0.01% of the value of securities on creating a hold, but minimum Rs. 25 is chargeable
Reconversion of mutual fund units to SOA	Per instruction it is Rs. 10
Rematerialization	For every 100 securities or part thereof, it is Rs. 10, subject to maximum Rs. 5,00,000 Otherwise, Rs. 10 per certificate as a flat fee, whichever is higher pledge/hypothecation No fee applicable for rematerialization of Government Securities
Margin Pledge Margin Pledge Initiation from client account to TM Re-Pledge from CM account to CC account Re-Pledge from TM account to CM account Invocation by CM or TM Margin Pledge release by TM / CM to Client Account Re-pledge release by CM to TM account	NOTE: No charges for re-pledge release/ invocation by CC Per instruction it is Rs. 5 Per instruction it is Rs. 1 Per instruction it is Rs. 1 Per instruction it is Rs. 5 Per instruction it is Rs. 5 Per instruction it is Rs. 1
Settlement Fees Credit to CM account from CC Debit instruction for a client’s account Transfer from CM account to CM account of another Clearing Member Inter-settlement transfers in the CM Account/s NOTE: No charges for mandatory transfers due to transmission on client’s death and account transfers to clients from one participant to another due to suspension/expulsion of the participant	NOTE: No charges for re-pledge release/ invocation by CC Per instruction Rs. 1 subject to at least Rs. 1,500 and Rs, 5,000 maximum per Quarter per CM Rs. 5 per debit instruction Rs. 5 per debit instruction Rs. 5 per debit instruction
Security deposit payable during admission – interest-free and refundable	Rs. 10,00,000 with Clearing House and Clearing Corporation exempted
CAS	For email CAS, Rs. 0.75 per BO demat account transaction For physical CAS it is Rs. 8 per BO demat account transaction
Annual Fee for IDEAS	For the first DPM set up it is Rs. 10,000 For every additional DPM set up it is Rs. 5,000
Minimum fee to Participants	Per year Rs. 1,00,000 NOTE: The participant will be charged the difference if the total billing amount to him/her in an FY is lower than the minimum fee
DPM software maintenance	Per annum Rs. 40,000 or a one-time charge of Rs. 2.5 lac
Connectivity charges One-time installation cost Annual fee based on bandwidth	Inclusive of taxes it is Rs. 11,000 Inclusive of taxes, the minimum and maximum fee are Rs. 65,000 and Rs. 2,50,000 respectively

NSDL Fees and Charges to Issuers

Here is a list of National Securities Depository Limited charges and fees for issuers:

Services	Fees/Charges
Joining fees for companies Per instruction Rs. 25 No charges on invoking/closing pledge/hypothecation	Rs. 15,000 Rs. 20,000
One-time custody fee (not charged from 1 November, 2011)	On market capitalization, it is 0.05% + service tax NOTE: If the above-mentioned fee is opted to be paid by an issuer till 31 October, 2011, then the issuer has to also pay for any newly issued shares at the given rate of five basis points. This charge is calculated on the value of shares based on the issue price of newly issued shares. But the issuer does not have to pay this custody fee on issue bonus shares thereafter by the company
Data Service for Buy Back, Right Issues, FPO, IPO, etc	Per record Rs. 2.50, but the charges are subject to minimums as mentioned here: Issue size above Rs. 1000 crores: Rs. 1,00,000 Above Rs. 100 crores but up to Rs. 1000 crores: Rs. 50,000 Above Rs. 10 crores but up to Rs. 100 crores: Rs. 25,000 Up to Rs. 10 crores: Rs. 10,000 Minimum fees for Debit Public Issues: Above 1000 crores: Rs. 50,000 Above Rs. 100 crores but up to Rs. 1000 crores: Rs. 25,000 Up to Rs. 100 crores: Rs. 15,000 Minimum fees for SME issues: Issue size above Rs. 10 crores but up to Rs. 25 crores: Rs. 10,000 Up to Rs. 10 crores: Rs. 5,000
Distribution of non-cash corporate benefits Debit or credit to accounts for Mutual Funds Units (TRASE) Issue of short-term debt instruments and commercial paper Corporate action for credit or debit to accounts	Per record Rs. 10, but you have to pay a minimum of Rs. 300 per corporate action For 5 issues it is Rs. 10,000 and for every additional 5 issues, you have to pay a fee of Rs. 10,000 Per record it is Rs. Rs. 10, but you have to pay a minimum of Rs. 1,000 per corporate action
Non-extinguishment of debt securities	ISIN per day is Rs. 100 per instance
Annual custody fee (Not applicable for Government Securities)	It is Rs. 11 per folio. However, this charge is subject to the minimum cost as given below: Rs. 75, 000 for nominal value of admitted securities above Rs. 20 crores Rs. 45,000 for the same above Rs. 10 crores and up to Rs. 20 crores Rs. 22,500 for the same above Rs. 5 crores but up to Rs. 10 crores Rs. 9,000 for the same up to Rs. 5 crores Rs. 5,000 for up to Rs. 2.5 crores but only for issuer of unlisted shares
BENPOS download	Rs. 15,000 per BENPOS for above 10,000 records Rs. 7,500 per BENPOS for up to 10,000 records Periodic BENPOS is free on Quarter end and statutory and every Friday
Change in face value of ISIN	Per ISIN request it is Rs. 2,000
Conversion of LOA to long term debentures	Per ISIN it is Rs. 2,000
Change of RTA	Nominal value of securities admitted in NSDL above Rs. 20 crores: Rs. 25,000 Above Rs. 10 crores but up Rs. 20 crores: Rs. 20,000 Above Rs. 5 crores but up to Rs. 10 crores: Rs. 15,000 Up to Rs. 5 crores: Rs. 10,000
Corporate Action (Buy Back) Each Tender offer buyback One-time charge for open market buy back	Rs. 1,000 Rs. 2,000
Online corporate actions (processing charges)	Per record Rs. 10, subject to minimum and maximum Rs. 2,500 and Rs. 20,000 respectively per corporate action
Tender offers	Rs. 1,00,000
Rectification of error by R&T agent/Issuer	0.01 % on transaction value, but it is subject to maximum Rs. 15,000 and minimum Rs. 1,500
CAS	Rs. 0.30 per MF folio email Rs. 2 per physical MF
Reactivation of a ISIN or Corporate Action fee to transfer in a suspended ISIN of a private limited company	0.01% of the book/face value or transaction value, whichever is higher but you have to pay Rs. 10,000 as minimum fee per such request
Daily Benpos Downloads and transfer feeds to AMCs (TRASE)	Asset under management above Rs. 50,000 crores: Per year Rs. 10 lacs More than Rs. 10,000 crores but up to Rs. 50,000 crores: Per year Rs. 7.5 lacs Up to Rs. 10,000 crores: Per year Rs. 5 lacs
Processing fee for documents	Rs. 20,000 for documents processing for the to be listed or listed companies. This fee is chargeable for documents issuance/cancellation/alteration of shares. For issuing shares pursuant to employee share benefit schemes, the fee is Rs. 20,000 maximum and minimum Rs. 5,000 in a financial year Rs. 250 for documents pertaining to issue/redemption/alteration/cancelation of securities other than those given above but excluding Government Securities and Mutual Fund units
Investment of Foreign Portfolio Investors through primary market issuances – Sharing information and data validating	Issue size above Rs. 1000 crores: Rs. 50,000 Above Rs. 100 crores but up to Rs. 1000 crores: Rs. 37,500 Above Rs. 10 crores but up to Rs. 100 crores: Rs. 18,750 Up to Rs. 10 crores: Rs. 7,500
Corporate Actions - Data Service for name verification	Per record Rs. 2.50 but you have to pay a minimum fee of Rs. 2,000 per such corporate action
Appointment as a Designated Depository to facilitate listed company to monitor foreign investment limits	Per year Rs. 25,000 for companies in S&PBSE 500 or Nifty 500 index as on 31 March of past financial year Per year Rs. 10,000 for all other companies

NSDL Fees and Charges to Other Users

Here is a list of National Securities Depository Limited charges and fees for other users:

Services	Users	Fees/Charges
Charges for DPM software	Registrar and Transfer Agents	Per year Rs. 40,000 or a one-time fee of Rs. 2.5 lacs
Charges for Connectivity	Registrar and Transfer Agents	Rs. 11,000 as a one-time installation cost The minimum and maximum annual fees based on bandwidth are Rs. 65,000 and Rs. 2,50,000 respectively
Charges for Demat Account validation service for FPOs/IPOs	Stock Exchanges	Per record Rs. 2.50, but it is subject to the minimum fee as given here: Issue size up to Rs. 10 crores, the minimum fee at slab level is Rs. 10,000 More than Rs. 10 crores and up to Rs. 100 crores – Rs. 25,000 More than Rs. 100 crores and up to Rs. 1000 crores – Rs. 50,000 More than Rs. 1000 crores – Rs. 1,00,000 Minimum Fee for Debt Public Issues: Rs. 15,000 is the minimum fees for issue size more than Rs. 100 crores Rs. 25,000 minimum fees for more than Rs. 100 crores and up to Rs. 1000 crores Rs. 50,000 minimum fees for more than Rs. 1000 crores Minimum Fee for SME Issues: Issue size up to Rs. 10 crores, the minimum fee is Rs. 5,000 Rs. 10,000 for issue size more than Rs. 10 crores and up to Rs. 25 crores
IDEAS	Clearing Member	Per annum Rs. 30,000 for new registration Per annum Rs. 28,000 for existing Clearing Members
Validation Service through electronic book mechanism for credit of debt securities	Electronic Book Providers	Per record Rs. 1, but per month you have to pay a minimum fee of Rs. 5000
Email communication received by investors based on the requests of Stock Exchange	Stock Exchanges	Per email 13 paisa
Data Service through stock exchange for Mutual Fund Subscription	Stock Exchanges	Per record Rs. 1, but per month you have to pay a minimum fee of Rs. 5000
Validation Service for the registration of Mutual Fund Client	Stock Exchanges	Per record Rs. 1, but per month you have to pay a minimum fee of Rs. 5000
Data Service through exchange platform for non-competitive bidding for Government Securities	Stock Exchanges	Per record Rs. 1, but per month you have to pay a minimum fee of Rs. 5000
Data Service through exchange platform for Sovereign Gold Bonds through exchange platform	Stock Exchanges	Per record Rs. 1, but per month you have to pay a minimum fee of Rs. 5000

Frequently Asked Questions about NSDL Charges and Fees

Here are FAQs on fees and charges by National Securities Depository Limited:

1. Why does NSDL charges for its services?

NSDL is one of the largest financial Securities Depository introduced in India on November 8th, 1996. It offers several services to investors and clearing members through intermediaries. In order to maintain a competitive infrastructure, staff, and other resources, it is logical for NSDL to charge a fair fee for transactions, settlements, and account positions.

2. Who are the business partners of NSDL?

National Securities Depository Limited has business partners to provide services to clearing members and investors. The business partners include investors, registrars and share transfer agents, issuing companies, depository participants, clearing houses/corporations of the stock exchanges. They charge fees to clients for the services they offer. In turn, NSDL charges fees to DPs, issuers, and other users.

3. What is the penalty on the non-payment/delay in submitting the annual custody fee?

The annual custody fee is applicable on all securities but not on government securities. In case the issuers do not pay the required charges, then the Depository may apply an interest of 12% per year from the due date till the date it receives the payment.

4. How is a Clearing Member Account categorized?

In case of failure in payment of the annual custody fee, the Depository may stop providing details to clearing corporation/clearing members/clients/R&T Agents/intermediary to the Issuer as per the Bye Laws and Business Rules. The Depository may not now allow the Issuer to utilize any infrastructure along with the issuance of securities in electronic form.

5. What are the charges by DPs for clients?

DPs are free to charge fees to clients as per their financials. Here is a comparative chart for the same. But the information provided is subject to change as per the discretion of DPs.

NSDL