CDSC awards membership

KATHMANDU, SEP 14: 

CDS and Clearing Ltd (CDSC) has awarded membership to two more deposit participatory (DP) –– Nabil Investment Banking and Everest Finance Ltd. Nepal’s only central depository system has already given 

membership to Ace Capital and Civil Capital. 

The operation of central depository requires DPs to hold the investor’s records in a dematerialised form. DP will act like a bank for the securities, while CDSC is going to be the clearing house that will settle the account after each share transaction. 

Bank of Kathmandu, Everest Bank, Citizens Investment Trust, Shikhar Insurance, Himalayan Bank, Siddhartha Bank, and Royal Merchant Banking and Finance have also applied for the membership for DP after getting a licence from Securities Board of Nepal. 

According to the CDS Regulation-2068, a depository participant needs to have Rs 10 million net worth to receive a licence. 

A bank or financial institution, stock broker, registrar and transfer agent, custodian or any such entity as may be prescribed by the board from time to time can work as depository participant, according to the regulation.

Source: THT