The Ministry of Finance (MoF) has approved the Central Depository System (CDS) Regulations that aims to modernize the trading of securities in the secondary market.
The Ministry Sunday informed Securities Board of Nepal (SEBON) – the capital market regulator — about the approval of the regulations.
“The Ministry of Finance Sunday informed us that the CDS Regulations has been approved. We will inform later on from when the regulations will come into effect,” Shurbir Poudel, the chairman of SEBON, told Republica.
By approving the CDS Regulations, the government has paved the way for starting CDS Company as per the Securities Act, 2006. Nepal Stock Exchange (Nepse) will have 51 percent in the to-be-formed company, while some banks and financial institutions will hold the remaining stake.
“We have already completed necessary preparations to set up the CDS Company. We will start the process of registering the company once we are formally informed about the approval of the regulations,” said Shankar Man Singh, the general manager of Nepse. He further informed that almost 75 percent work of the works related to developing CDS software has been completed so far. “We are hopeful that we will be able to commence start CDS System within four months,” he added.
The Indian government has expressed commitment to provide about Rs 150 million to set up CDS — the online based trading system — that enables trading of stock without any paper work. The proposed CDS Company will have a paid-up capital of Rs 300 million.
Nepse officials said CDS would make ownership transfer of securities fast and reliable and maintain data base of investors in a more scientific way with computer based trading.
Once CDS comes into effect, investors can transfer ownership of stocks in just a few seconds.
As per the newly approved regulations, CDS Company can open branches in different parts of the country and can set up transaction settlement fund with the seed money of Rs 10 million. It will collect Rs 3 per transaction from the investors.
According to the regulations, investors can deposit government bonds and bank deposit certificates in CDS Company for trading, transaction settlement and transfer of ownership.
(news source:myrepublica.com)
The Ministry Sunday informed Securities Board of Nepal (SEBON) – the capital market regulator — about the approval of the regulations.
“The Ministry of Finance Sunday informed us that the CDS Regulations has been approved. We will inform later on from when the regulations will come into effect,” Shurbir Poudel, the chairman of SEBON, told Republica.
By approving the CDS Regulations, the government has paved the way for starting CDS Company as per the Securities Act, 2006. Nepal Stock Exchange (Nepse) will have 51 percent in the to-be-formed company, while some banks and financial institutions will hold the remaining stake.
“We have already completed necessary preparations to set up the CDS Company. We will start the process of registering the company once we are formally informed about the approval of the regulations,” said Shankar Man Singh, the general manager of Nepse. He further informed that almost 75 percent work of the works related to developing CDS software has been completed so far. “We are hopeful that we will be able to commence start CDS System within four months,” he added.
The Indian government has expressed commitment to provide about Rs 150 million to set up CDS — the online based trading system — that enables trading of stock without any paper work. The proposed CDS Company will have a paid-up capital of Rs 300 million.
Nepse officials said CDS would make ownership transfer of securities fast and reliable and maintain data base of investors in a more scientific way with computer based trading.
Once CDS comes into effect, investors can transfer ownership of stocks in just a few seconds.
As per the newly approved regulations, CDS Company can open branches in different parts of the country and can set up transaction settlement fund with the seed money of Rs 10 million. It will collect Rs 3 per transaction from the investors.
According to the regulations, investors can deposit government bonds and bank deposit certificates in CDS Company for trading, transaction settlement and transfer of ownership.
(news source:myrepublica.com)
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