Nepal’s Demat (Dematerialized) account holders could soon transfer their shares from one Demat account to another. This liberal provision benefits share market investors who operate multiple Demat accounts.
CDS and Clearing Limited (CDSC) enabled share transfer between two Demat accounts after acknowledging the difficulties for customers under the existing system.
The current system allows users to run two Demat accounts which can be opened by Depository Participants or share brokers. However, investors can make their trading account at brokers’ only. The quibble is that with one trading account, only one Demat account is integrated. This means users can’t transfer shares between their two different Demat accounts. They need to process it physically. They are required to go to their respective merchant bank, fill out a form that the depository merchant bank takes to CDSC, and have it transferred to their other Demat account.
Also read:
- How To Check IPO Allotment Results In Nepal? Learn 3 Easy Ways
- Change Your Meroshare Password And Transaction PIN In These Easy Steps
CDSC enabling you to transfer shares between two Demat accounts
If one user has Demat accounts at merchant broker and broker, then it’s possible for them to transfer their shares between the two Demat accounts. This rids investors of having to process it physically and saves them time. They don’t have to stand in queues at the bank as the system itself allows the transaction.
CDSC adds that since investors don’t usually transact the shares on the day of transferring from their other Demat account, it won’t cause an issue. The new process will only be implemented after identifying possible hiccups. According to CSDS’s latest data, there are over 62 lakh Demat account holders in Nepal.
