CDSC urges investors to close excess Demat accounts; warns to suspend a/c for those who posses more than 2 a/c

Central Depository System and Clearing (CDSC) has informed all the Demat account holders to close their accounts who are maintaining more than two Demat accounts. Earlier, Securities Board of Nepal (SEBON) had directed all investors to have a maximum of 2 demat accounts in their name. The Board had also given time until Bhadra end to all investors to close any excess demat accounts they might have in their name. But till now, many investors have not closed their excess accounts. Issuing a press statement published yesterday, CDSC has given time within 35 days to all investors to close any excess demat accounts they might have in their name. After 35 days also if the account holders do not close their accounts then CDSC will suspend all Demat accounts upon operation of more than two accounts. CDS believes that it will make the ASBA system and share allotment process more efficient, which will ultimately benefit the investors themselves. It will also help to realize the approximate number of Demat accounts in operation and make the process transparent, added the statement.