Month: October 2014

Brief Introduction and features of CDS and DEMAT A/C

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What is CDS?

CDS stands for Central Depository System.

What is CDSC?

CDSC stands for CDS and Clearing Limited. It is a company established under the company act and is promoted by Nepal Stock Exchange Limited (NEPSE) in 2010 to provide centralized depository, clearing and settlement services in Nepal.

What is DEMAT A/C?

DEMAT stands for dematerializaion in short. Demat A/C is the type of account where we deposit shares, just similar to bank account. DEMAT A/C is compulsory for trading. If you are a trader and you buy/sell shares often, this is a must.

What are the benefits of creating DEMAT A/C?

  • Dematerialization of shares. i.e. shares are converted into electronic form from physical form. No need to worry about loss and tearing of share certificates.
  • No need of Name Transfer. i.e. there will be no such thing as BT as the shares will come to your name within some days of purchase.
  • You can sell part of your shares without needing to split the shares before selling.
  • Bonus shares are transferred into your DEMAT A/C. i.e. no need to wait in line to receive your certificates and wait for listing of bonus shares.
  • Applying for IPO and receiving alloted shares on your DEMAT A/C.

Where can I create DEMAT A/C?

One can create DEMAT A/C from any of the listed Companies:-

  1. Civil Capital Market Ltd.
  2. ACE Capital Ltd.
  3. Stock Management & DP Ltd.
  4. Nabil Investment Banking Ltd.
  5. NIBL Capital Markets Ltd.
  6. Laxmi Capital Ltd.
  7. Everest Bank Limited
  8. Siddhartha Capital Limited
  9. NMB Capital Limited
  10. Bank of Kathmandu Limited
  11. Global IME Capital Limited
  12. Dipshikha Dhitopatra Karobar Co. Pvt. Ltd.
  13. Trishakti Securities Public Ltd.

What are the charges for creating and maintaining DEMAT A/C?

  • Account opening charge:- Rs. 50
  • Operating Charge:- Rs. 100
  • Yearly Renewal Charge:- Rs. 100

How can I dematerialize my shares?

One can dematerialize the shares by filling demat request form on the concerned DP and providing share certificates to them.

Can I create and use DEMAT A/C of my family members?

Yes, you can dematerialize the shares owned by your family members. For this, you will have to fill up another type of form which is designed for using other’s account by gaining authority from them. You can do so from the same DP.

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