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KOLKATA, Jan. 30

THE Securities and Exchange Board of India (SEBI) has declined to review its directive to listed companies regarding maintaining all work related to share registry — both physical and electronic — at a single point.

In separate communications to corporates, who had sought the review of the decision, the depository and custodial division of SEBI today said that no change could be made in the directive, neither could any company be exempted from its ambit.

The SEBI directive on the subject had been communicated to the listed companies through a circular of December 27. The companies were instructed to adopt the single point mechanism — either in- house or by a SEBI-approved registrar and transfer agent (RTA) — "not later than" February 1.

A number of companies including IBP, Coats of India, BoC, India Steamship, Andrew Yule and CESC had sought review or relaxation of the directives. Certain chamber of commerce also requested the market regulator to withdraw the directive.

The principal arguments put forward by the corporates were that concentrating all share work in-house would mean seeking connectivity with National Securities Depository Ltd and Central Depository Services (India) Ltd at an uneconomical cost.

On the other hand, the corporates argued that transferring all share-related work to RTA would mean a cut in jobs in the in-house share department, loss of confidentiality as also security and administrative difficulties, particularly in terms of secretarial audits, which required submission of quarterly reconciliation certificate.

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