Shankar Man Singh, joint coordinator of Project Implementation Committee (PIC) formed to expedite the process of establishing CDS in the country´s sole secondary market, said they had received first tranche of the support that totals Rs 142.7 million. [break]
Singh, who is also the general manager of Nepal Stock Exchange (Nepse), told myrepublica.com that the committee expects to receive next installments of assistance through Ministry of Finance (MoF). The future installments will be used to pay CDSL India - project consultant - and vendor CMC of Tata Consultancy that is developing CDS system for Nepal under the recommendation of PIC.
The amount received under first installment would be used for the payment of fees for consultancy firm, software vendor, and to conduct trainings for issue managers, concerned staffers of Securities Board of Nepal (SEBON), Nepse and other stakeholders, Singh added.
Nepse has also formed a dedicated group of personnel, comprising legal, IT and clearing experts, to assist in smooth implementation of CDS. CDSL of India and CMC of Tata group were also hired to implement CDS in Nepal.
Nepse, Citizens Investment Trust (CIT) and a group of leading banks together have established Central Depository Company in Nepal.
Officials said CDS will offer safety and convenience with securities in digital form compared to existing physical form, enhances liquidity by immediate transfers, end lengthy process of stock transactions besides frauds and manipulation in the secondary market.
Singh said the consulting firm and the software vendor were working with the target of bringing CDS into operation within six months.
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