Six brokers get DP license, rest to follow the suit immediately after Dashain
ShareSansar, September 29:
In what may be dubbed as a major development in implementation of full-fledged CDS system in Nepal, the Securities Board of Nepal (Sebon) has issued the license of Depositary Partner (DP) to six brokers. 
The six brokers to get DP status are broker number 14 (Nepal Stock House Pvt. Ltd., Anamnagar), 36 (Secured Securities Pvt.Limited Putalisadak), 38 (Dipshika Dhitopatra Karobar Co. Pvt. Ltd., Anamnagar), 48 (Trishakti Securities Public Ltd., Putalisadak), 49 (Online Securities Pvt. Ltd, Bagbazar) and 57 (Araya Tara Investment And Securities Pvt. Ltd., Anamnagar)
“Sebon issued the license to these six brokers yesterday,” President of Stock Brokers Association of Nepal Narendra Sijapati told ShareSansar today. “On top of that CDSC officials have already given the membership and has also conducted office inspection of broker number 38, and the CDS system is likely to be installed there today itself.”
As per the regulations, Sebon first issues license to the DP, and the CDSCL then awards the membership to the DP after inspecting the office of the concerned party.
“Similarly, 14 more brokers have already filed their application for DP at Sebon,” Sijapati further informed. “The rest of the brokers will follow the suit immediately after Dashain.”
It may be noted that mock trading and settlement of demat share was held on September 26 in the run up to the actual trading of scrips, which will take place immediately after the Dashain holidays.
CDSCL with the help of all 50 brokers had conducted mock trading and settlement of 2000 transaction of three listed companies, according to CDSCL official Sabina Pujari. All the 50 brokers have taken part in the mock test that lasted for two hours and the test has been successful.
The stocks of SRBL, NBB and SBL was used for the mock test, which has now shown that the CDS system can take the normal load of trading and settling the real stocks smoothly.
Nepal Stock Exchange (Nepse) and CDSCL have been saying that they will implement the demat form of share trading starting with the stock of commercial banks from Ashoj 20 for the stocks of the commercial banks in the first phase while the full-fledged operation will begin from Kartik 6.
As per the plan, the investors can sell their stock in physical format after Dashain, but the buyer must open a demat account to trade the stock. Eventually the trading and settlement of all the scrip for both sellers and buyers will take place in demat format soon.
The stock exchange and its subsidiary are even under the legal pressure to begin the paper-less technology by Kartik 6.
Central Depository Service Regulation 2010 clearly spells that the ‘securities transactions on Nepse after six months from the commencement of the operations of Central Depository Company shall be in demat form only.’
Since the operations of CDS begun for the first time begun on Baisakh 2, the full-fledged operation should start from Kartik 2.
Once the CDS is fully implemented, the market will rise to a new high, according to experts.
