Siddhartha Bank shares dematerialized

ShareSansar, June 16

Siddhartha Bank Limited is the latest to join Central Depository System and Clearing (CDSC) to get its shares dematerialized. The number of CDSC members has now reached 10.

CDSC signed an agreement with Siddhartha Bank Limited on Friday to dematerialize the company’s 1,61,92,443 unit of shares.

With the establishment of CDSC, share transactions -- such as share transfer, settlement and clearing -- were expected to be swifter, reducing the time for the investors to get hold of share ownership certificates.

CDSC that had officially begun operation on July 16, 2012 has been unable to become fully functional.  It has so far been able to grant membership and open dematerialized accounts of only a handful of listed firms.

Not too many individual investors have opened dematerialized accounts because very few of the listed firms have dematerialized shares. The CDSC has so far a total of 327 demat accounts opened by investors, which hold a paltry 6561 units of securities.    
Apart from Siddhartha Bank, those who have got their shares registered with the CDSC are Agriculture Development Bank, Bank of Kathmandu, Laxmi Bank, Ace Development Bank, Everest Finance, Himalayan General Insurance, Shikhar Insurance, Siddhartha Insurance Limited and Nepal SBI Bank Limtied.