NEPSE expedites process for adding 3 clearing banks

SEBON had earlier directed NEPSE and CDS and Clearing Limited (CDSC) to have at least 3 clearing banks operational in order to make clearing process less time-consuming and more transparent. NEPSE will soon appoint three clearing banks to expedite the clearance and settlement of payments related to securities transaction. Currently, Global IME Bank Limited is the only clearing bank operating for settlement of transactions in the secondary market of Nepal. As per an official of NEPSE, “We will select three new clearing banks through a competitive process”. Banks with following criteria will be given top priority:

1. Class “A” commercial bank
2. Higher paid up capital
3. Robust physical and technical aspect
4. Approved for ASBA system
5. Should possess DP license
6. Higher number of branches around Nepal
7. Should be providing banking services to the Government

After the addition of clearing banks, transactions and settlement in the secondary market is expected to be less time-consuming and help all concerned parties, added the official.