KATHMANDU, OCT 09 -
The Nepal Stock Exchange (Nepse) formally embraced the paperless system
of stocks trading on Wednesday, with first transactions of the
dematerialised shares of commercial banks.
The CDS & Clearing (CDSC), Nepse subsidiary, has allowed the stocks
buyers to own the paperless certificates of the banking group in the
first phase.
Sabina Pujari, senior officer at the CDSC, said currently both
paperless and physical form of share certificates of the sellers can be
traded through the system. “However, the buyers can only receive the
ownership certificates in electronic format,” she said
.
Having enforced the working procedures on dematerialisation of physical
shares 2071, the CDSCL has come up with the guideline for the
settlement of physical shares currently in possession of the investors.
The sellers with physical certificates can open a demat account
(electronic account) through depository participant (DP), an agent
appointed by the CDSC.
As per the guideline, the payment should be settled within T+3 (within 3
days of the trading). The DP needs to submit the ownership transfer and
demat request forms within T+7 days at the CDSC. Following the
submission, the CDSC will make the buyers receive the paperless form
within T+9 days.
Pujari said electronic copies of the share certificates received by the
DP would be registered with the concerned company online. According to
her, the DP provides ‘Beneficiary owned Identification Number’ to the
owners of the paperless stocks.
The investors can place an order using ‘delivery instruction slip’
through the DP or the clearing members (stocks brokers) at the time of
selling. Both the DPs and clearing members are directly linked to CDS
through software, which helps settle stock transaction instantly.
According to Pujari, each transaction would be given a unique
‘Settlement ID’. “The ID that appears on the CDSC website would help the
investors know about the status of their transactions.
As of now, 12 companies have obtained DP licence, including Civil
Capital Market, Ace Capital, Investment Management and DP Ltd, Nabil
Investment Banking, NIBL Capital Markets, Laxmi Capital Market and
Everest Bank. Six others are in the process of obtaining license.
So far 51 companies have registered 180,653 shares into paperless
format at the CDSC. According to the CDSC, almost all the commercial
banks except Nepal Bank Limited and Kumari Bank have been registered for
the paperles
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