CDS and Clearing Ltd (CDSC) has stepped into its second year of
operation without undertaking even a single settlement of a
dematerialised share as it failed to get listed firms to register their
shares.
After a year gone by, there are only 14 listed companies that have registered shares for dematerialisation with CDSC. About 214 listed companies are yet to get their shares registered. The deadline for companies to dematerialise their shares was over by the end of fiscal year 2012-13.
“CDSC, as a company, does not have the authority to impose any kind of penalty or to refuse dematerialisation of shares past the due date, that is why we cannot aggressively pursue the companies,” said CEO of CDSC Subodh Sharma Sigdel.
CDSC — the only central depository for shares — has completed one year of operations today, but due to lack of dematerialised shares and disinterest of brokers to get clearing membership, its full operation has still not been possible.
“We have been assured by many companies that they will dematerialise shares in the new fiscal year in order to avoid paying for annual fee, and a few are mulling mergers, so they will dematerialise shares after completing the mergers, but we are hopeful more companies will come,” said Sigdel.
Nepal Bangladesh Bank and Civil Bank got their shares dematerialised today. CDSC is supposed to clear and settle the traded dematerialised shares electronically so that a seller gets paid within four days of a transaction. Moreover, investors need not hold on to share certificates.
Moreover, despite being fully equipped to undertake automated clearing and settlement of shares traded, CDSC could not do so due to the absence of brokers taking up the jobs of clearing members.
src : THT
After a year gone by, there are only 14 listed companies that have registered shares for dematerialisation with CDSC. About 214 listed companies are yet to get their shares registered. The deadline for companies to dematerialise their shares was over by the end of fiscal year 2012-13.
“CDSC, as a company, does not have the authority to impose any kind of penalty or to refuse dematerialisation of shares past the due date, that is why we cannot aggressively pursue the companies,” said CEO of CDSC Subodh Sharma Sigdel.
CDSC — the only central depository for shares — has completed one year of operations today, but due to lack of dematerialised shares and disinterest of brokers to get clearing membership, its full operation has still not been possible.
“We have been assured by many companies that they will dematerialise shares in the new fiscal year in order to avoid paying for annual fee, and a few are mulling mergers, so they will dematerialise shares after completing the mergers, but we are hopeful more companies will come,” said Sigdel.
Nepal Bangladesh Bank and Civil Bank got their shares dematerialised today. CDSC is supposed to clear and settle the traded dematerialised shares electronically so that a seller gets paid within four days of a transaction. Moreover, investors need not hold on to share certificates.
Moreover, despite being fully equipped to undertake automated clearing and settlement of shares traded, CDSC could not do so due to the absence of brokers taking up the jobs of clearing members.
src : THT
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