CDS and Clearing Limited

Introduction

CDS and Clearing Limited, a company established under the company act is a company promoted by Nepal Stock Exchange Limited (NEPSE) in 2010 to provide centralized depository, clearing and settlement services in Nepal. The company is inaugurated on 31st March 2011.

CDS and Clearing Limited Team

The main objective of the company is to act as a central depository for various instruments (Equity, Bonds, and Warrants etc) especially to handle securities in dematerialized form. This organization is entrusted with the safekeeping, deposit, and withdrawal of securities certificates and transfer of ownership/rights of the said instruments. The depository functions will be performed by the company under the securities regulations of Securities Board of Nepal (SEBON).

Board of Directors

The Board of Directors constitutes members from Nepal Stock Exchange and Nepal Rastra Bank. The current Board members are:-

Dr. Jiba Nath Dhital - Chairman
Mr. Bishnu Nepal- Member
Mr. Pramod Kumar Bhattarai- Member
Mr. Janak Raj Panta - Member

Management Team

The current Management Team members are:-

Mr. Subodh Sharma Sigdel - Chief Executive Officer (CEO)

Role and Functions

CDS and Clearing Limited performs its functions through a network of Depository Participants (DP's) who interact with investors. Further the system has the clearing system for clearing members of NEPSE for settlement and for issuers and RTAs for demat and shareholder's functions. The core functions carried out are:-

Enabling the deposit and withdrawal of securities through a process called the dematerilization and rematerilization to and from the depository.
Maintaining the investors holding in the electronic form.
Effecting settlement of securities traded on the stock exchange.
Carrying out settlement of 'off market trades'.
Providing secure and convenient electronic procedures for pledge of securities.
Advising periodically to the Share Registrar / Issuer about the beneficial owners of the securities.
Electronic credit of securities allotted in public issues, right or bonus issues or during any other corporate actions.
Freezing of demat accounts, so that debit from the account are not permitted.
Power of Attorney, nomination facility for demat accounts.

CDSC Update

Registered Companies:	7
Licensed Depository Participants:	7
Beneficial Owners' Demat Account:	326
No. of Shares in Demat Form:	6561
Companies in Pipeline for Admission of Securities:	15
DPs in Pipeline:	4
As of 2013-05-22

Recent Activites

CDS and Clearing Limited granted Depository Participant (DP) License to Everest Bank Ltd on 25th January, 2013.
CDS and Clearing Limited granted Depository Participant (DP) License to Laxmi Capital Market Ltd on 24th December, 2012.
CDSC, Nepal has become the new member of Asia-Pacific Central Securities Depository Group (ACG) on 21 September, 2012 at the 16th ACG General Meeting held in Bali Indonesia.
CDS and Clearing Limited granted Depository Participant (DP) License to Nabil Investment Banking Ltd on 13th September, 2012.
CDS and Clearing Limited granted Depository Participant (DP) License to Stock Management & DP Ltd. on 16th July, 2012.
CDS and Clearing Limited granted Depository Participant (DP) License to Ace Capital Ltd. on 24th May, 2012.
CDS and Clearing Limited granted Depository Participant (DP) License to Civil Capital Market Ltd. on 14th May, 2012.