Listed companies deny affiliating in CDS, clearing

KATHMANDU, May 15:

The Nepal Stock Exchange (NEPSE) listed companies have denied electronic transaction of stocks by affiliating to the Central Deposit System (CDS) and Clearing Ltd.

As per the Stocks CDS Regulations 2067 BS, they have to register their stocks in CDS within one year of operating their services.

The company has brought the clearing service from Kattik 1, 2069 BS after starting dmat account on Saun 1, but the companies are not affiliated in it even after two years.

NEPSE said only 27 out of 237 listed companies have applied and 16 have entered agreement for registration in it.

The company has said all services are ready of CDS after starting clearing of all stocks from April 15, 2013.

Company CEO Subodh Sharma Sigdel said all companies including investors should come to CDS.

Stock Board Spokesman Niraj Giri said it will come into full implementation from next fiscal year.

Shikhar Insurance Financial Chief Nilesh Ratna Tuladhar said his company was affiliated to it as transactions were easier and transparent.

Source: Republica