The Nepse, in its statement issued yesterday, warned the companies to get their shares dematerialized within 21 days. The stock exchange has said that it will take action to those companies who fail to abide by its diktat.
“This is final call to the listed companies. Those who do not come on board the paper-less trading system by the deadline we have issued will be delisted from the trading," warned Nepse General manager Sitaram Thapaliya, adding that the demat share trading will begin of other companies who have already dematerialized their shares.
Though the CDSC was expected to come into full-fledged operation two years earlier, the listed companies’ reluctance to take the membership of the CDSCL to get their shares demat was affecting the whole process.
Nepse’s had issued similiar ultimatum on July 22 to the listed companies to get the membership of its subsidiary for the full-fledged operation of dematerialized shares trading system. However, very few companies heeded such warning call.
The Nepse’s latest directive is expected to give an impetus towards full-fledged implementation of the much touted and much awaited paper-less trading.
"Unlike the previous instruction, the latest directive of the Nepse has come up with time-bound plan to implement the CDS," Subodh Raj Sigdel, CEO of the CDSCl told .
Nepse, in its stament, has said it will start the trading of demat form of securities of the commercial banks from October 6.
“Since the provision in the Central Depository Service Regulation is that the trading will be of only those securities which are demateralized by September 18, Nepse has issued the directive to the listed companies to get their shares sematerialized within 21 days,” reads the statement of the Nepse issued on Thursday.
Likewise, Nepse has also instructed the brokerage firms to get the membership of the depository participants by mid-September. Nepse has also notified the investors to open their demat account within the prescribed time period.
“The instruction will give an impetus to the full-fledged operation of the CDS by October 23. We are very much hopeful that the listed companies will comply with the Nepse’s directives,” added CDSCl's CEO Sigdel.
As of Friday, only 21 companies have taken the membership of the CDSCL while 61 other are in the pipeline for admission of their securities.
Most of the companies that have already taken the membership are commercial banks.
With the full-fledged operation of the CDS and fully automated online trading system (for which Nepse has already started process of hiring consultant), the daily turnover in the share market is projected to rise to at least Rs 1 arba from the current average daily turnover of Rs 40 crore.-SSN
No comments:
Post a Comment