Nepse directs all brokers to submit bank guarantee, install CDS system by mid-August
ShareSansar, July 28:
Nepal Stock Exchange Limited (Nepse) has directed all the clearing members, basically share brokers, to immediately submit their bank guarantee to CDS and Clearing Limited, and to complete all the process related to system installation and connectivity by Shrawan end (August 16).
Issuing the directive to the clearing members, Nepse has even stated that their failure to secure bank guarantee and to install the CDS system so far has seriously drawn its attention.
Nepse has also warned that it will bar the brokers from trading if they do not install the system by August 16.
President of Brokers Association Narendra Sijapati has welcomed this step taken by Nepse to expedite the much-awaited CDS operation.
“Only 16 out of the total 50 brokers in the country are yet to complete the CDS process. Hence this directive will help them speed up their process,” said Sijapati.
Since the beginning of the new fiscal year a few days back, Nepse has stepped up efforts to enforce CDS operation.
Only last week, Nepse directed all the listed companies to apply for the dematerialization of its shares within August 16.
The only stock exchange in the country has gone on to warn that it may be compelled to delist the companies if they fail to comply with this directive.
So far only around 17 companies have reached an agreement with CDSC, a subsidiary of Nepse, to dematerialize their stocks.
In this regard, Nepse has directed all the broking companies to send all the clients' shares for the name transfer process from blank transfer (BT) status.
The stakeholders in the market have lauded the latest directive of Nepse as a bold move.
“We appreciate this bold move by Nepse. Now we are also planning to appeal to the share investors to open CDS account by Bhadra,” said Chairperson of Nepal Investors’ Froum Raj Kumar Timilsina. “Now, if Sebon also becomes bold enough, we will be trading only on demat shares by Kartik 2 (October 19) as per its directives.”
