NEPSE investors- Get Demat account from CDSC for digital clearing & settlement of stock transaction

CDS and Clearing (CDSC), a subsidiary of the Nepal Stock Exchange (Nepse), officially started clearing and settlement of securities transactions digitally. The paperless system allows processing to be done in an easier and faster way. While the manual system used to take at least three days to transfer ownership of shares after a sale, the central depository system (CDS) does it instantly.

According to CDSC, the CDS acts as the central depository (safekeeping, deposit and withdrawal of securities certificates and transfer of ownership/rights) for various instruments such as equity, bonds and warrants in a dematerialised (electronic) form. Under the new provision, stock ownership has to be first converted into Demat format.
A Demat account can be opened through Depository Participant (DP), an agent appointed by the CDSC.

List of Licensed Depository Participants 

- Civil Capital Market Ltd. 

-ACE Capital Ltd. 

-Stock Management & DP Ltd. 

-Nabil Investment Banking Ltd. 

-NIBL Capital Markets Ltd.

-Laxmi Capital Ltd. 

-Everest Bank Limited 

-Siddhartha Capital Limited 

-NMB Capital Limited 

-Bank of Kathmandu Limited 

 Similarly, the companies listed on Nepse also have to open a Demat account with CDSC. Potential investors, after being okayed for a Demat account, can post the number of shares they want to buy or sell through their brokers.
According to CDSC company secretary Subodh Dhungel, the should enter the assigned number of shares in “Pull Account” through which trading is done. Investors are required to pay Rs 50 to open a Demat account and an annual fee of Rs 100. “Other processing costs are born by the concerned companies,” said Dhungel.
Under the new system, brokers also have to become members of CDSC to act on behalf of their clients.

List of Registered Clearing Members

S.No.	Clearing Members	CM No.
1	ABC Securities Pvt. Ltd.	17
2	Agrawal Securities Pvt. Ltd.	6
3	Arun Securities Pvt. Ltd.	3
4	Aryatara Investment & Securities Pvt. Ltd.	57
5	Ashutosh Brokerage & Securities Pvt. Ltd.	8
6	Asian Securities Pvt. Limited	26
7	Bhrikuti Stock Broking Co. Pvt. Ltd.	55
8	Creative Securities Pvt. Ltd.	40
9	Crystal Kanchanjunga Securities Pvt. Ltd.	50
10	Dakshinkali Investment & Securities Pvt. Ltd.	33
11	Dipshika Dhitopatra Karobar Co. Pvt. Ltd.	38
12	Divyaa Securities & Stock House Pvt. Ltd.	59
13	Imperial Securities Co. Pvt. Ltd.	45
14	Investment Management Nepal Pvt. Ltd.	53
15	J.F. Securities Company Pvt. Ltd.	7
16	Kalika Securities Pvt. Ltd.	46
17	Kumari Securities Pvt. Ltd.	1
18	Kohinoor Investment And Securities Pvt. Ltd.	35
19	Linch Stock Market Ltd.	41
20	Malla & Malla Stock Broking Company Pvt. Ltd.	11
21	Market Securities Exchange Co. Pvt. Ltd.	5
22	Midas Stock Broking Company Pvt. Limited	21
23	Nasa Securities Co. Ltd.	58
24	Nepal Investment & Securities Trading Pvt. Ltd.	19
25	Nepal Stock House Pvt. Ltd.	14
26	Online Securities Pvt. Ltd.	49
27	Opal Securities Investment Pvt. Ltd.	4
28	Oxford Securities Pvt. Ltd.	51
29	Pragyan Securities Pvt. Ltd.	10
30	Premier Securities Company Limited	32
31	Primo Securities Pvt. Ltd.	16
32	Sagarmatha Securities Pvt. Limited	18
33	Sani Securities Co. Ltd.	42
34	Sewa Securities Pvt. Ltd.	54
35	Shree Krishna Securities Ltd.	28
36	Sipla Securities Pvt. Ltd.	20
37	Siprabi Securities Pvt. Limited	22
38	South Asian Bulls Pvt. Ltd.	43
39	Sundhara Securities Ltd.	56
40	Sweta Securities Pvt. Ltd.	25
41	Thrive Brokerage House Pvt. Limited	13
42	Trishakti Securities Public Pvt. Ltd.	48
43	Trisul Securities & Investment Ltd.	29
44	Vision Securities Pvt. Ltd.	34
45	Neev Securities Pvt. Ltd.	47
46	Dynamic Money Managers Securities Pvt. Ltd.	44
47	Secured Securities Ltd.	36
48	Sri Hari Securities Pvt. Ltd.	56
49	Sumeru Securities Pvt. Ltd.	39
50	Swarnalaxmi Securities Pvt. Ltd.	37

Other companies which have obtained a license from the Securities Board of Nepal (Sebon) can also perform the clearing function of stock transactions. The new provision is expected to minimise hassles for investors while buying and selling stocks. The system also makes it easier to acquire rights shares issued by the companies concerned.
“The new system allows traders to do multiple transaction on the same day,” said Dhungel. According to him, investors can also buy and sell shares in small quantities.
All the listed companies will have to open a Demat account at CDSC.

List of Registered Companies 

S.No.	Company	ISIN
1	ACE Development Bank Ltd.	NPE000A00007
2	Agricultural Development Bank	NPE001A00005
3	Everest Finance Co. Ltd.	NPE002A00003
4	Bank of Kathmandu Ltd.	NPE003A00001
5	Laxmi Bank Ltd.	NPE004A00009
6	Himalayan General Insurance Co. Ltd.	NPE005A00006
7	Shikhar Insurance Co. Ltd.	NPE006A00004
8	Nepal SBI Bank Ltd.	NPE007A00002
9	Siddhartha Insurance Limited	NPE008A00000
10	Siddartha Bank Ltd.	NPE009A00008
11	PrimeLife Insurance Co. Ltd.	NPE010A00006
12	Citizens Bank International Ltd.	NPE011A00004
13	Civil Bank Ltd.	NPE012A00002
14	Nepal Bangladesh Bank Ltd.	NPE013A00000
15	Sunrise Bank Ltd.	NPE014A00008
16	Nepal Life Insurance Co. Ltd.	NPE209A00004

17	Himalayan Bank Ltd.	NPE019A00007 (Ordinary Share)                                                     NPE019A00015 (Promoter Share)

CDSC UPDATE

Registered Companies:	17
Registered Clearing Members:	50
Licensed Depository Participants:	10
Beneficial Owners' Demat Account:	624
No. of Shares in Demat Form:	179814
Companies in Pipeline for Admission of Securities:	20
DPs in Pipeline:	2
As of 2014-07-22

Kumari Bank endorses 14% bonus share

Kumari Bank Limited’s 13 Annual General Meeting has formally endorsed 14 percent bonus shares and 0.74 percent cash dividend to the shareholders from the net profit it posted in the last fiscal year 2069/70.

The AGM held in the capital has also elected four directors among the promoter shareholders and one public director.

Incumbent chairman Noor Pratap Rana and directors Uttam Prasad Bhattarai and Naresh Dugar have been relected to the Board of Directors from among the promoters.
Similarly, Santosh Kumar Lama has also been elected as a new director from among the promoters.

Puna Ram Bhandari has been elected as the public director.

The tenure of the promoter directors will be four years at the most and the tenure of the public director to be elected through the AGM will be three years at the most in line with the tenure of the two public directors earlier elected to the board.

Kumari Bank Limited had posted 5.82 percent growth in profit in the last fiscal year.

The bank made profits of Rs 29.15 crore, a slight growth over Rs 27.55 crore reported in the previous fiscal year.

It has also posted notable profit by the end of the third quarter

It posted 14 percent net profit by the end of the third quarter, especially from the write back of Rs 3.45 crore and non operating income of Rs 34.58 lakh though the bank’s net interest income has decreased from Rs69.36 crore to Rs 58.71 crore by the end of the third quarter.

During the AGM, the bank officials informed that they plan to mobilize Rs 29.34 arba in deposit and Rs 24.57 arba in loan by the end of the fiscal year.

The bank with 28 branches, two extension counters and 39 ATMs also plans to add eight more branches in near future. It is also building its own building at Naxal in Kathmandu.

Kumari Bank Limited had posted 5.82 percent growth in profit in the last fiscal year. -SSN