KATHMANDU, SEP 04 - The Nepal Stock Exchange (Nepse) on Thursday issued a mandatory circular asking the listed companies to dematerialise their share certificates and to register in the CDS and Clearing Limited within the next three weeks.
Of 240 listed companies, only 68 have converted their shares into demat--electronic--format, said Nepse.
According to Nepse, it issued the circular citing a large number of the listed companies ignoring the exchange's previous circular to go into paperless system. "As the six-month deadline that we gave the companies for the purpose nears, we are forced to issue the circular," said Murahari Parajuli, assistant spokesperson at Nepse.
Nepse carried out the paperless transaction for the first time on April 16. The CDS bylaw maintains that all the companies should adopt paperless transaction within six months from the date of the first dematerialised transaction.
The paperless transaction of the commercial banks' stocks will start from October 6, with a target to follow it up with the entire stocks' transaction from October 19, Nepse said in a statement. Nepse has asked all the stockbrokers to take license of depository participants by mid September.
It has also urged the investors to do transactions only through their demat account within the prescribed date.
Source: The Kathmandu Post