SEBON urges investors to maintain max 2 demat accounts

Securities Board of Nepal (SEBON) has directed all investors to have a maximum of 2 demat accounts in their name. The Board has given time until Bhadra end to all investors to close any excess demat accounts they might have in their name. Issuing a press statement, the Board said that this will make the ASBA system and share allotment process more efficient, which will ultimately benefit the investors themselves. For investors who have obtained new demat accounts for their portfolio management service, the responsibility to close the accounts fall on the portfolio managers themselves. Those investors can have two demat accounts in their name plus one managed by the concerned portfolio management company. However, the excess demat account must be closed after the expiry of the portfolio service. Likewise, the Board has also urged concerned parties to not take any fees when transferring securities from one demat account to another. This will also help to realize the approximate number of demat accounts in operation and make the process transparent, added the statement.