Indian envoy hands over CDS software to Nepal
India’s Ambassador to Nepal Rakesh Sood on Thursday handed over the software for the Central Depository System (CDS) to Tanka Paneru, chairman of the Central Depository System and Clearing Limited (CCL) amid a function.
The CDS is being established with Indian financial and technical grant assistance of Rs 147.2 million. The Government of India has already disbursed 50 percent of the amount.
The Central Depository Services Limited, India provided technical consultancy to NEPSE, for the setting up of DCS, while CMC Limited, an IT subsidiary of Tata, manufactured the software.
“The Central Depository System of India has played a significant role in the expansion of India’s capital market. I am sure this will have a similar impact in Nepal too,” said Sood at the function.
Similarly, Yubaraj Khatiwada, governor of Nepal Rastra Bank (NRB), was optimistic of the capital market’s expansion and development after the beginning of CDS. “As it will reduce trading costs, investors can execute safe trading,” said Khatiwada.
Nepal is the last country in the South Asian region to establish CDS. CDS facilitates electronic record keeping of securities related data, including numbers and types of shares issued by listed companies, besides number of shares held by individual investors, forming an electronic data bank.
With the electronic data bank, shares clearance and settlement procedures will be faster, smoother and reliable. Currently, these procedures take normally two weeks time as they are executed manually.
Paneru said the company will come into operation soon.
NRB to divest NEPSE stakes: Guv
KATHMANDU: NRB Governor Yubaraj Khatiwada has said that the central bank has decided to handover its stakes in Nepal Stock Exchange (NEPSE) to a strategic partner. At the function to handover CDS software, Khatiwada said the NRB plans to divest its shares in NEPSE to privatise the capital market. The central bank currently holds 35 percent shares in NEPSE. Securities Board of Nepal Chairman Surbir Poudel said the capital market would take new direction if NEPSE is privatised. “As all of us are well aware of the government’s conservative approach while running a business, it is necessary to bring in a private sector to run the capital market,” said Poudel.
Posted on: 2011-04-01 08:47
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