Over 900 thousand shares brought under Demat system

KATHMANDU:

A total of 914,971 units of physical shares of 35 companies including commercial banks have been brought into 'Demat system' so far since the launching of this system in the country.

Nepal Stock Exchange granted the permission to launch the Demat system to Thapathali-based CDS and Clearing Limited on October 6. The system, adopted for the first time in the country, is aimed at making the share transactions (sale, purchase and transfer) easier and guaranteeing its security. The system of dematerializing shares is called the Central Depository System (CDS).

The Limited is promoted by Nepal Stock Exchange has dematerialized such units of shares including of the 'A'- grade commercial banks till Thursday.

Sixty seven various companies including financial institutes, hotels and hydropower companies have already agreed with the CDC to open Demat accounts of their share holders. Likewise, Salt Trading Corporation and Nepal Telecom are in pipeline for the agreement.

The system helps mitigate various kinds of risks for its securities associated with paper documents. Likewise, with the launching of the system, transfer of share has been possible within three days. No shareholders shall visit the company for the transfer of shares.

Sabina Pujari, officer at the Limited said that the share-holders except the commercial banks have started registering in the system from October 19.

The clearing limited has planned to introduce the CDS in the transaction of the shares of the commercial banks from upcoming January 16 and the same policy for 'B' group insurance companies and finance cooperatives from February 13.

Similarly, the same policy would be implemented for other insurance companies and finance companies from April 15.

Source: THT