SEBON brings 3rd amendments to Central Depository Service Bylaws 2068; intra family and after death ownership transfer of securities to become easier and quicker

Securities Board of Nepal (SEBON) has endorsed the third amendment of Central Depository Service Bylaws 2068 as proposed by CDS and Clearing Ltd with an aim to ease the process of registration and ownership transfer of the listed stocks in the only stock market (NEPSE). The board has made following provisions for the intra family and after death stock ownership transfer process through the third amendment:

1- First, the individual who wishes to transfer stock ownership (intra family and after death of owner) should apply with the Depository Partner with the specified application form including all required documents.

2- Next, the DP is required to verify and validate the submitted application and documents after which the same should be entered into the system of CDSC.

3- Next, the DP should submit the details that is received from the CDSC’s system after entry of the application to CDS and Clearing to be entertained further.

4- The CDSC is then required to verify and validate the application and complete the transfer of ownership as soon as possible after receiving the forwarded application from DP.

5- In case of other claims for the stock ownership after the death of its primary owner, CDSC is required to publish the notice for the related parties asking them to register their claim with a notice period of 35 days.

6- The CDSC also needs to make sure that all the bonus and dividends would be transferred to the rightful owner after the ownership transfer of the stocks following the death of the original owner.