Nepse brings CDS and Clearing agency

Nepal Stock Exchange (Nepse) has registered CDS and Clearing Ltd (CCL) that will introduce Central Depository System (CDS) soon.
"The Rs 500 million-authorised capital company will manage securities transaction, trading, and keep records electronically and act as a clearing agency too," said Shankar Man Singh, general manager and chief executive officer of the Nepse. "The company has Rs 300 million paid-up capital."
The government has been promising to bring CDS in operation since last couple of years as it is supposed to streamline stock trading at par with top exchanges in the world. "It will also reduce the discrepancy rate as well," Singh said, adding that the company has a four-member management committee led by Tanka Prasad Paneru, chairman of Nepse, including Trilochan Pangeni, executive director of Nepal Rastra Bank (NRB), Shankar Man Shrestha, general manager and CEO, and Pramod Kumar Bhattarai, acting deputy GM of Nepse. The company has appointed Bijay Gurung, manager of Nepse as its chief operating officer (COO).
Under the CDS, the current practice of holding and moving the scrip of quoted shares physically will be replaced by a safe and dependable computerised book entry system.
"All the physical scrips of the companies listed on the stock exchange will be recorded electronically, and investors will have CDS accounts which will show their holdings," he said, adding that the seller’s account will be debited and the buyer’s account will be credited when shares are traded.
After the Securities Board of Nepal (Sebon) passed the regulation for CDS in October, Nepse had registered a new company on November 21 in partnership with 17 commercial banks and Citizens Investment Trust (CIT) to introduce CDS.
However, they had dispute over the issue of share in the proposed CDS Company forcing the Nepse to registered a separate company as its sole subsidiary on December 22. "Interested commercial banks can now buy shares of CDS and Clearing Ltd,” he added.