The listed companies are reluctant to demat their stocks at CDS and Clearing Ltd (CDSCL), despite Nepal Stock Exchange’s ultimatum to register by mid-August.
“Only three companies have registered themselves at the CDS and Clearing within mid-August deadline,” the CDS informed, adding that some 57 listed companies are in pipeline. As the front-line regulator, Nepse had issued a directive of the listed companies one month ago to get the membership of the CDSC.
CDSCL – a subsidiary of Nepse – is expected to provide one-window service for centralised depository, clearing and settlement services in the capital market. It also acts as a central depository for various instruments like equity, bonds, and warrants, especially to handle securities in dematerialised form without physical movements of securities or execution of transfer.
The demat of the listed companies is also expected to expedite full-fledged electronic trading of the stocks expanding the market.
Despite repeated pressure since past two years, the CDSC has not been able to come into full-fledged operation.