Nepal’s first CSD was launched on Monday to clear and settle securities transactions electronically.
CDS and Clearing, the clearing subsidiary of the Nepal Stock Exchange (Nepse) launched the Central Depository System (CDS) to the replace the old system, whereby clearing securities would take a fortnight to a month to settle.
There are reportedly seven CSD participants, whose securities will be held by the CDS in dematerialized form.
Listed companies have to dematerialize their paper share certificates by Oct. 20 2013. Physical share transfer will end six months after that date.