KATHMANDU, July 22: Finance Minister Barsha Man Pun instructed concerned officials to introduce the Central Depository System (CDS), an online-based share trading system in the stock market, at the earliest.
Pun´s instruction came during an inspection of CDS and Clearing Ltd on Sunday to obtain information on the preparation to launching the CDS in the capital market.
“CDS is a modern, scientific, transparent and fast system for stock trading. Hence I instruct all concerned officials to speed up the process for full fledged operation of the system,” Pun said.
Dr Jiba Nath Dhital, president of CDS and Clearing Company, handed over the account number to Pun who had opened dematerialization account for online based share trading under the CDS.
In an effort to ensure transparent and fast share trading, clearing and settlement with paperless record keeping system, the government recently initiated dematerialization listing of shares by converting physical share certificate into electronic version, targeting CDS operation in full swing by the mid January next year.
Baikuntha Aryal, joint secretary at the Ministry of Finance urged the officials to immediately suggest the government whether to impose Capital Gain Tax (CGT) or transaction tax on the trading of stock under the CDS.
The government has so far been collecting CGT on the profit in the transaction of stocks.
Amid lingering confusion over how to impose tax on transaction of stock and absence of Clearing and Settlement Bylaws the introduction of CDS has been delayed till mid-January next year deferring the targeted date of mid-July.
In the absence of CDS, Nepse has been undertaking the task of clearing and settlement of shares under the paper based system.
Securities Board of Nepal (Sebon) had given permission to the company on August 24, 2011 to operate CDS. It got operating license from Company Registrar Office on April 13 this year.
Nepse gains 9.27 points
KATHMANDU: With the most of the trading groups registering gains, the Nepal Stock Exchange (Nepse) index shot up by 9.27 points or 2.35 percent to settle at 404.73 points on Sunday, the first day of week´s transaction. Total turnover of the stock reached Rs 92.35 million with 262,893 units of shares being traded through 1577 transactions.
Market capitalization, total value of listed shares in Nepse, also touched Rs 382.44 billion on Sunday. Banking and Development Bank groups rose by 9.15 points and 0.71 points to close at 375.33 points and 251.44 points respectively.
Similarly, sub-indices of Hydropower, Insurance and Others groups also went up by 24.5 points, 3.49 points and 21.14 points to end at 709.99 points, 512.48 points and 614.47 points respectively.