Sebon urges DPs to transfer bonus & right share within 3 working days
Mon, Aug 22, 2016 12:43 PM on Latest, Featured, Stock Market,
Securities Board of Nepal (SEBON) has issued a press statement addressing all the depository participants (DPs) to ease share dematerialization process. The Board has issued nine points instructions to DPs issuing a notice on Sunday (Bhadra 5, 2073).
Investors have been complaining about delay in Demat account opening, transfer of bonus and right share in account holder’s account and delay in debit Instruction Slip (DIS).Thus Sebon has issued notice urging DPs and share registrars to accomplish tasks on time.
The Board has issued following instructions:
- To open client’s demat account and provide Debit Instruction Slip (DIS) within three working days of receiving application from them.
- To submit the application and document received from investors for dematerialization of securities to share registrar or respective listed companies within seven working days.
- To inform the DPs about the approval of the dematerialization, complete its entire works, including the signature verification, and revert to respective DPs within three business days.
- Instruct brokerage firms, who also have a DP license, to not make it mandatory for its investors to open account in its own firm.
- Direct BFIs working as DPs to not to force investors opening demat account from its branch offices and perform financial transactions through them.
- To provide the Demat account holder’s User ID and Password to shareholders and other people except shareholders.
- To transfer share from one demat account to another demat account as per the request of shareholder.
- To provide services to shareholders from any branch of banks facilitating DP services.
- To transfer the bonus and cash dividend of shareholders in their respective demat account within three working days.
