CDSC presents phase-wise CDS implementation plan to Sebon

ShareSansar, October 14:

CDS and Clearing Ltd (CDSC) has submitted the phase-wise implementation of the CDS plan to the capital market regulator Securities Board of Nepal (Sebon).

According to the plan, buying of the securities of commercial banks and other group companies’ will be conducted according to the ‘Modes of Operations Related to Physical Securities Settlement’ Ashoj 20 and Karkti 2 respectively.

Likewise, the plan includes the trading and the clearing and settlement of the banking scrips completely on dematerialized form from Magh 2 onwards. Trading and clearing and settlement of development bank, micro finance development bank and insurance companies’ securities will be held completely on dematerialized form from Falgun 1.

After starting the trading and clearing and settlement of remaining groups’ shares from Baisakh 2, 2072 onward in complete dematerialized form, the CDS will come into full fledged-implementation.

CDSC has put forth the plan it submitted to the Sebon after the news related to the plan created confusions among the investors regarding the CDS implementation.

According to the CDSC, it has received only 118 applications out of 233 listed companies for the admission of their securities while only 59 companies have become its members.

Likewise, 182934 out of 1722848000 units of securities have been dematerialized till date while only 1,809 beneficial owner accounts have been opened till date. It is estimated that there are 10 lakh investors in the capital market of the country.

“DPs need some time to expand their network across the country to open the beneficial owner account,” read the statement of the CDSC adding, “against this backdrop, clearing and settlement of the securities solely in the dematerialized form from Karktik 2 according to CDS Bylaws 2068 will create negative impact in the capital market as most of the listed companies and even the investors are yet to come on board the paper-less technology.”