CDSC to dematerialise BoK shares

KATHMANDU, NOV 22: 

CDS and Clearing Ltd (CDSC) has got authority to dematerialise 57.7 million unit shares so far from four listed companies. 

CDSC signed an agreement with Bank of Kathmandu (BoK), today, to dematerialise its 16.1 million shares. 

It has already dematerialised 41.56 million unit shares of Ace Development Bank, Agriculture Development Bank, and Royal Merchant Banking and Finance. There are 1.6 billion unit shares and bonds listed at the stock exchange.

CDSC had started the process of dematerialising share certificates from the beginning of the current fiscal year. It has four Depository Participants (DP) –– that will hold the investors’ dematerialised accounts –– namely, Nabil Investment Banking, Everest Finance, Ace Capital and Civil Capital.

Central depository will keep the share record electronically in a dematerialised form and allow rapid clearing and settlement, thus boosting the capital market. However, the indifference shown by listed companies to get their shares dematerialsed so that share clearing, settlement and transfer can be performed electronically has delayed the full-fledged operation of central depository. 

On the other hand, due to the absence of the Clearing and Settlement Regulation which is being prepared by the regulator, CDSC is unable to start automated clearing and settlement service as well. 

That is why it has started manual clearing and settlement from the stock exchange.

Source: THT