SEBON’s new directive for Demat account & Investor’s Identity Card for public offering

Securities Board of Nepal (SEBON) has published a press release requesting all the investors to open DEMAT account for share transaction.

1. SEBON has made it compulsory for share transaction of the listed companies in NEPSE from Magh 01, 2072. Also the bonus and right share of the investors will be directly transferred to the shareholders demat account. Investors from Kathmandu valley should have compulsory demat account from Shrawan1 , 2073 and investors outside the valley should posses demat account from Magh 1, 2073 to apply any public issues.

However the directives are not mandatory in case of the shareholders from industry affected area.

2. Investors are facing multiple problems due to lack of investors identity database. To report the problems, SEBON is working on the task to provide investors with an Investors Identification Card.

CDS and Clearing House have already implemented Depository Participant (DP) services in 55 districts and will soon complete the process in 75 districts within the end of the Fiscal Year 2072/73. The directives are supposed to ease the true share investors in the entire investment process and for upgrading of share market.