Dematerialised account in limbo

KATHMANDU,JUNE 16: 

CDS and Clearing (CDSC) has not been able to begin operation due to bureaucratic hassles.

“Though, we are ready to open dematerialised accounts of investors, CDSC has left us in a limbo,” complained CEO of Civil Capital Bhisma Raj Chalise –– one of the two Depository Participants (DP) licensed by the capital market regulator. 

“CDSC had made us invest in the necessary infrastructure but it is lying idle since a couple of months as CDSC has not connected us to the server. If it is going to take longer for CDSC to start work then it can at least try a test connection and open demo accounts to utilise this idle period,” he pointed out. 

CDSC was supposed to begin operations by mid-April according to the Immediate Action Plan of the Finance Ministry but it could not start operations due to the apparent absence of a DP. But now despite two DPs, CDSC is not yet ready as public companies have yet to get their stocks registered for dematerialisation. 

Moreover, the Finance Ministry has given CDSC another deadline to start operations –– mid-July –– which is the beginning of next fiscal year. “If the current trend continues then CDSC will take another year to get started,” expressed Chalise.

Source: THT