CDS to come into operation after Dashain

ShareSansar, Sept 19:

Central Depository Service (CDS) will fully come into operation after the festive season of Dashain.

The CDS was in a sort of limbo after the stock brokers opposed a provision to deposit Rs ten lakh to become clearing members at the CDS and Clearing Company (CDSC), a subsidiary of Nepal Stock Exchange Limited (NEPSE).

Now that CDSC have agreed to let the stock brokers to furnish bank guarantee worth Rs 10 lakh instead of depositing the sum, the latter have decided to associate themselves with the CDSC as clearing agents.

Once this process is complete, only those stock brokers, who are registered at the CDSC, can act as the clearing agents.

However, NEPSE Chairperson Dr Jeevan Nath Dhital has said that it will still take some more time to digitalize all the physical shares registered with the NEPSE.

He also informed that the NEPSE has asked Yomari Inc Private Limited, a software company, to carry out the digitalization work for a year.

So far only 15 out of 226 listed companies have started to digitalize their physical shares though the CDCS was established two years back.