Services
As a depository participant, Nepal DP Limited (NDPL) provide the following services to the securities investors.
- Open DEMAT account of securities investors as a Beneficial Owner (BO)
- De-materialization of securities held by the Beneficial Owner (BO)
- Re-materialization of securities
- Maintain record of securities in the electronic form
- Settlement trades by transferring/receiving the securities from/in BO accounts
- Settlement of off-market trades that is occurred between BOs outside NEPSE
- Provide electronic credit of securities allotted by issuers during IPOs
- Deposit the non financial corporate benefits (such as: bonus, right shares, etc.) issued by issuers in the de-mat account of BOs
- Facilitate in pledging of dematerialized securities
- Others as allowed by laws and regulations in regard to securities depository.
Dematerialization converts physical securities into electronic form. To trade securities, investors must open a Demat account from Depository Participant (DP).
Required Documents to Open Demat Accounts
For Individual (Nepalese Citizenship)
- Duly Filled Application form (Annexure 12)
- Recent Passport size photo
- Birth Certificate and Guardian Citizenship (In case of minor).
- Bank Account Details
For Organization
- Duly Filled Application form (Annexure 13)
- Registration Certificate and PAN certificate copy
- MOA (Memorandum of Association) and AOA (Article of Association) copy
- Copy of Board Minute with decision to open the BO account
- Copy of passport size photo and citizenship copy of the account operator
- Bank account details of Beneficial Owner
Pledged shares are shares held by an investor that are offered as collateral to a lender in exchange for a loan. If the borrower defaults on the loan, the lender has the right to sell the pledged shares to recover the borrowed amount. Whereas unpledging of shares means release of shares by paying off the loan amount or clearing your ledger debits & associated dues.
Required Documents to Pledge Shares
- Pledge Cover Letter (addressed to the Pledgor DP by the pledgee requesting pledge setup)
- Loan Deed (Loan agreement between the Pledgor and the Pledgee)
- Form of Annex 18 filled out by pledgor & Annex 19 filled out by the pledgee.
Required Documents to Unpledge Shares
- Unpledge/Release Cover Letter (addressed to the Pledgor DP by the pledgee requesting release shares)
Freezing shares refers to the restriction of securities, preventing the sale of any shares. According to our regulatory body, CDS & Clearing Limited (CDSC), we are authorized to impose a debit freeze only. If any other institution, such as RTS or a court, issues a letter to freeze a Beneficial Owner’s (BO’s) shares, we can impose both a debit freeze and a credit freeze. Beneficial owners may purchase shares but are prohibited from selling them if they have not renewed their Demat accounts or have not received a letter to unfreeze shares from the same RTS or court.
Conversely, unfreezing shares involves lifting these restrictions, allowing beneficial owners to freely buy and sell their shares.
