Raise number of clearing banks to three: SEBON

Kathmandu January 28- Securities Board of Nepal (SEBON) — regulator of the securities market in the country — has directed Nepal Stock Exchange (NEPSE) and CDS and Clearing Ltd (CDSCL) to increase the number of securities clearing banks to three.

Currently, all the works related to clearing of securities are being conducted by CDSCL via Global IME Bank.

“Now NEPSE and CDSCL will have to appoint two more banks to conduct works related to clearing,” SEBON Spokesperson Niraj Giri said. “This will provide additional option to execute works related to clearing and make clearing service more competitive.”

SEBON also hopes that the rise in the number of clearing banks will facilitate investors and help expand the secondary market, as per a statement issued today.

“This will also create groundwork to launch online trading, clearing and settlement services,” Giri said.

Currently, all the works related to trading of securities are being conducted by NEPSE, while jobs related to clearing and settlement are being carried out by CDSCL.

SEBON has also directed NEPSE to do the needful so that investors can easily access price-sensitive information of the listed companies and such companies can directly upload such information on NEPSE’s website with due approval from the stock market administrators.