CDSC sets deadline for 7 companies; bars BT transactions after Baisakh 6

ShareSansar, March 31:

In what could be a sign of Central Depository System and Clearing Limited (CDSC) finally getting down to business, the agency has instructed seven listed companies to get their shares fully dematerialized by Baisakh 6, 2072.

In a press release issued on Chait 16, the CDSC has said that from Chait 22 the shares of Shikhar Insurance, Global IME, Unilever Nepal, Himalayan General Insurance, Mahalaxmi Finance Limited, Everest Finance Company, Taragaoun Regency Hotels will have to be settled in dematerialized form.  

Although the shares of these companies may be sold in both materialized and demat form, the buyers will get the ownership only in the dmat form from Chait 22.

The CDS has also said that shares in Blank Transfer (BT) of all the seven companies will have to be sold or sent for ownership transfer (OT) at their respective RTS within 15 days beginning Chait 22. After Baisakh 6, the press statement says, the transactions in the shares of these companies cannot take place in the BT form as the shares of these companies will have to be traded in the dmat form.    

It is interesting to note that the seven companies chosen by the CDSC belong to diverse sector. While Global IME is one of the biggest commercial bank, Shikhar and Himalayan represent insurance sector, Unilever trading, Mahalaxmi and Everest finance sector and Taragaun Regency hospitality sector.

Of the total listed companies so far, only 88 have registered for dematerialization while 47 are in the pipeline for admission of their securities.  

It is believed that online trading, facilitated by CDSC, would free the traders and individual investors from the hassles and risks associated with physical shares.