Fingers Crossed, Investors May Now Get Their Shares and Payment Faster; SEBON Approves T+2 Settlement System

The task to change the settlement and clearance system to T+2 is on the to-do list of SEBON for the year 2077/78. The regulatory body included this objective in view of the increasing use of technology in Nepal's stock market and international practice.

CDS and Clearing Limited had thus submitted a proposal to the board to change the current settlement T+3 system to T+2. SEBON has now approved the proposal. T+3 means that it takes 3 days for the settlement of securities traded. Thus, buyers receive the shares that they buy in about three days. Now that SEBON has approved the T+2 system, the settlement process for the shares traded will hopefully take lesser time.

It is a frequent complaint from investors that they do not get the shares and payment on time. Although the system is T+3 in theory, clients do not receive their payment even after a week of selling. Since the concerned authorities seem invested to improve and speed up the settlement system, investors can hope that the stock market will be more fluid in the days to come.

The T+2 system will be implemented after CDSC issues a public notice to address all the concerned parties on the matter. Meanwhile, the board expects the exchange to be more dynamic with a faster settlement system that will give more investment opportunities for investors.