Buyers to get shares on demat format from Ashoj 20 : CDSCL

Investors having the securities on the physical format can sell their scrips while the buyers buying the shares on whatever format will, however, get the shares on the demat format with the paper-less trading coming into operation from Ashoj 20.

Following the Nepal Stock Exchange (Nepse)’s ultimatum to the listed companies to come on board the demat shares trading system within 21 days, CDS and Clearing Ltd has also upped the preparation for the full-fledged implementation of the CDS within the deadline.

Nepse, in its circular on last Thursday, said that the listed companies who do not get their shares dematerialized within 21 days will be delisted from the trading.

It has also scheduled the trading of demat form of securities of the commercial banks from Ashoj 20. According to the CDS regulation, the full-fledged operation of the CDS will have to begin from Kartik 2.

Amid confusions among the investors about their status of the paper certificates and the trading process, the CDS and Clearing Ltd (CDSCL) has made it clear that the physical securities of the investors can be easily sold in the same format until Kartik 1.

According to the statement of the CDSCL, those physical securities that are being traded on the blank transfer can be easily sold in the same format on the blank transfer until a day before the full-fledged CDS operation begins.

The buyer will get the securities only in the demat format if the securities goes into the ownership transfer process.

The transaction, clearing and the settlement of the dematerialized securities will be held in the same format, according to the notice of the CDSCL.

The CDSCL has also urged the investors to conduct trading through CDS which ensures secure and timely trading, clearing and settlement. - SSN