A depository facilitates the holding and/or transacting securities in book entry form. In other words, a depository takes the ownership guarantee of the shareholders by holding those securities and other market instruments which are listed in the secondary market, distributed or allotted and can be deposited into the electronic form. The investor has to open a demat account to avail the services of depository. Additionally, the depository maintains the record in the account of the investors.

A depository participant (DP) acts as a link between investors and depositories, offering services like demat account opening, transfer of securities, and management of corporate actions. 

You can apply online by visiting  Bank’s website or visit your nearest branch with the required KYC documents. Our team will guide you through the process. 

CDS and Clearing Ltd. is the sole depository in Nepal established in 2067 B.S. under Company Act 2063 with an objective to render service of dematerialization of securities. It is wholly owned subsidiary company of Nepal Stock Exchange Ltd. (NEPSE). The authorized capital and issued capital of CDSC is NRs. 500 million and NRs. 300 million respectively

The services CDSC provides are as mentioned below:

– Deposit, withdrawal and transfer of securities

– Electronic credit of securities directly into the investor’s demat account allotted in Initial Public Offering (IPO)

– To safeguard the investors’ securities into the electronic form and to debit/credit the particular investor’s account as per the transactions occurred in the book entry system

– Quicker distribution of securities allotted by issuers under IPO and corporate actions and benefits of the issuers

– To provide secure and convenient electronic procedures for pledge and un-pledge of securities.

– To provide updated statement and reconciliation statement.

Yes, linking your bank account ensures smooth transactions, including crediting of dividends and proceeds from securities sales. 

NIMB Ace Capital Bank supports dividends, interest payments, bonus shares, rights issues, and stock splits directly through the demat account. 

No security deposit is required for individual retail investors. However, terms may vary for institutional clients. 

NIMB Ace Capital Bank adheres to stringent security measures and SEBON regulations to protect your investments. 

The following parties are involved with CDSC:

– Beneficial Owner (BO): The investor

– Depository Participant (DP): Agent of the depository

– Issuer: Issuing Company

– Registrar and Transfer Agent (RTA): Agent of the Issuer

– Stock Brokers

Yes, the Bank enables smooth and secure transfers of securities between your demat accounts. 

The bank automatically updates and credits eligible corporate benefits such as dividends or bonus shares to your demat account. 

The bank strictly adheres to all SEBON and NEPSE guidelines to provide secure and transparent services.

The purpose of opening a demat account are as mentioned below:

– To convert the physical securities into the electronic form

– To deposit and transfer the NEPSE listed securities in a dematerialized form

– To credit the securities allotted through IPO and corporate actions (such as rights share issue, bonus issue, merger, etc.) in a dematerialized form,

– To receive the statement of the securities held in a demat account.

– To pledge the securities held in a demat account.

– To rematerialize the securities held in a demat account.