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SEBON Directs DPs to Open Demat Account within 3 Days

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SEBON Directs DPs to Open Demat Account within 3 Days
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August 22: In the wake of complaints from investors regarding delays and complications on opening demat account and dematerialization process, Securities Board of Nepal (SEBON) has directed depository participants (DPs) and share registrars to open beneficiary accounts within three days and provide Debit Instruction Slips.

According to the SEBON directive, DPs should submit the application and document received from investors for dematerialization of securities to share registrar within seven days. After that, the share registrars should dematerialise the share certificates within three days after examining the documents and inform the depository participants.

As per the directive, the registrars need to make sure that investors receive their bonus and right shares in their beneficiary accounts within three days from the listing of those shares on the stock market. SEBON has also instructed brokerage firms having DP licenses not to make mandatory for their investors to open account in their own firms.  Moreover, banks and financial institutions (BFIs) working as depository participants have been asked not to force investors to open accounts from their branch offices in order to do financial transactions.

Additionally, SEBON has also directed the depository participants and share registrars not to disclose user identification and password with unconcerned individuals.SEBON has provided investors with its hotline (1660-01-44433) to file complaints if depository participants and share registrars cause any delay.

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