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Aalu of bull ji online buying and selling from home or office is different from CDS.

For online trading NEPSE will be upgrading its trading system in the near future. For this purpose NEPSE has selected and shortlisted 3 foreign companies.

Dilbert ji
Can we buy and sell share from our home and office ? if yes how and what is process ?

Thanks for your information Dilbert ji.

My two cents (or paisa)
1. Yes. Since CDS keep telling that we do not need to demat shares in order to sell but will get only demated while buying.
2. No. According to their FAQ, you can keep them in a physical form (wholly or partially) unless you want to sell them.
3. Read 3.
4. Same as before.
5. Same as we keep money in the bank. No physical money, but if you want, you can get physical money, or use your debit card to pay virtually using POS. With demated shares, you can request to get it in physical form. If you pass away, same as bank accounts. If your family knows about your account, they can go through legal path to get them handed over.
6. Am not sure about it. Maybe someone else would know.
7. I think yes. Just like now.

Their FAQ: http://www.cdscnp.com/CDSC_FAQ_%28Nepali%29.pdf or http://www.cdscnp.com/CDSC_FAQ_English.pdf

I have some questions:

1: Do we need demat account to apply for IPO?

2: Do we have to register/convert all our shares into Demat form?

3: About long term investment/I dont need to sell, Should I send those shares to convert too?

4: What will be the relation between brokers and Traders/investors after the full implementation of CDSC?

5: After reading above infos, looks like there wont be any clear physical proof of our shares/property after conversion like share certificate, What would happen after my death if my family does not know what shares I own?

6: What happens to the shares presently in collateral with banks?

7: After the full implementation, will there be one door policy like at present we get done everything by our broker- order, purchase, pay, get cheque, they do the verification, get certificate from them, pay our tax etc etc.

@mahilobhai, don't write without reading and trying to comprehend. My argument is only with share certificate. I am not againt sending documents to RTS and verifying. I know very well what RTS does. I have been in this market buying and selling stocks for around two decades.

Role of Stock Brokers same as of now.

Beneficial Owner (BO) - "Beneficial Owner" means the person who have opened their Beneficial Owner Account with Central Depository Company for depositing their securities or instruments and who have held the
securities and instruments which are capable of being deposited in demat form.

In simple terms investors who have opened BO account (in general demat account) in CDS.

would the role of broker company under cds remain the as of now? who is BO-1 in cds? (BO is beneficial owner).

Dilbert Ji,

Yes to get the cheque of cash dividend as we do now (show our identity and our demat account ID)...

Shree5 Ji,

You are correct, all the information is with Share Registrar (RTS) and no information with Depository Participant (DPs). So who is authentic party to verify is is not RTS ?

If you have alternative thoughts please share.

Yo desh ma nagarikta ko praman pattra ta nakkali paincha, share ko pramanpatra ko kurai nagarum.

Besides, the FAQ section of CDS & Clearing Ltd's site clearly mentions that you need to submit your share certification to dematerialize them to the DP, who in turn will submit them to the RTS for verification.

Here is the link to the PDF.
http://www.cdscnp.com/CDSC_FAQ_English.pdf
Goto page 14 for a flow chart.

I don't want to discuss whether or not the certificates need to bee authenticated. But your whole argument doesn't hold ground.

Company's Shareholder ID, signature specimen/verification, citizenship certificate is enough.

How can anyone deposit my shareholding with my name, company ID and my signature, which the RTS maintains in a register, into their Demat a/c just simply by printing fakes???

RTS are called registrar for a reason, because they maintain a Shareholder Registry.

Thank you for the information MailaBhai ji. So, incase the RTS don't have a system to do a direct deposit, we need to keep our share holder ID, since currently we just show them our share certificate.

For dividend payouts, I think I had discussed in earlier thread. But not, let me describe here.

1. Cash Dividend
> As far as I know for now, there is no change. You need to go to your company/RTS to get the cash dividend cheque/check and deposit to your account.

> The CDS system has option, where you can provide your bank account number that can be saved in CDS system. If RTS is well equipped and you had provided them authority to directly deposit the dividend in your Bank Account, they can can do that. But I am not certain if this has been provisioned yet or not.

2. Stock Dividend - (Rights and Bonus)

a. Right Share:
- As shareholder we are the person to decide to apply for right share or not.
- If we apply, we need to fill the right share application form as we do now.
- We need to provide our demat account number (aka Beneficial Owner(BO) account number) in that form.
- Submit that form to RTS with the amount that we want to purchase right share.
- After right share distribution, the quantity will be credited/deposited to our BO account (demat account).
- Just we need check our balance.

b. Bonus Share:
- Nothing much.
- Bonus share will be credited/deposited to our account at the time of distribution.
- Just we need to check our balance.


Hope all of the above three queries are clarified. If still have queries ... please post on this forum.

Q2. No charges to dematerialize shares.

Q1.
- As a share owner, you need to surrender certificate to dematerialize.
- DPs doesn't know if that share certificate is genuine or your signature is genuine.
- You are correct RTS has all the information.
- So RTS are the ultimate party to verify if everything genuine.
- So, it is mandatory to send the certificate to RTS before finally crediting your account.

* If we do not send Certificate to RTS, then think what happens, I can print number of FAKE or forge Certificate and surrender it to dematerialize at DP.
* Since, DPs do not have information of the share certificate what will they verify and not my signature when I had signed to obtain the certificate.

* So, If DPs directly deposits your certificate without sending it to RTSs, no check and balance and I will have my account credited with shares that I did not had.

It's like depositing FAKE/Forged cash/money at bank. Luckily, we have mechanism/machine to check if the cash/money is real or not. But we do not have such machines to check if the certificate is genuine or not.

So, since RTS has all the information, it needs to be sent to RTS.

And this process should not take large time. CDS bye-law states this process should be completed within 3 days.

Anyone know how the dividend payouts will be handled after CDS comes into full effect?

Why does the RTS need to authenticate the share certificates? RTS itself has the register of shareholders which contain all the information about the shareholder vis-à-vis Signator specimen, Citizenship Certificate. It is just a matter of checking and verifying registry and the deposit the same into the DEMAT A/C. Genuine ho hoina herne kam tesko ho ra. Kasto jhanjhatilo process. Going by this process it will take forever to demat one's entire shareholdings.

Ani uso vaye 2053 BS dekhi invest gareka harule ta one full briefcase nai dinu paryo.

MahiloBhai ji, is there a fee to demat the certificate?

Yes sir, you need to surrender your Physical Certificates to DP. They will authenticate the physical certificate, if genuine they will make it void and voila in your demat account you will have only the quantity of the shares you have that you can sell.


Process

1. Surrender Physical Certificate to DP
2. DP will forward the certificate to RTS
4. RTS will check the authenticity.
5. If genuine they will approve it.
6. Your physical certificate becomes void.
7. Your demat account will be credited with the "quantity of certificate" dematerialized.

I think you hand them over to the DP while demat-ing them along with your application. If you want to remat them, you ask the DP for it.

If there are some friends who know more, please share.

No no no Dilbert ji, what I am asking is what is the process of dematerialisation of our physical share certificate? Do we need to handover share certificates of all the companies we hold to the DP for dematerialisation? What to do with the physical certificates that is my question.

I think you need to fill up a form and pay certain amount of fee to the DP and have them demat the shares you hold.

The number of shares you have demated will be put in your account like paper money in banks. From what I understand, while sell, you transfer the number of shares to that of the brokers account and they will handle the transfer after you get your money.

Ye Dilbert ji, I have read the thread but I dont see anything about the actual process of demating of one's share certificates. Do we need to give the DP all our share certificates. How will the DP find out how many shares I have of which company.

Ok found it.

http://www.sharesansar.com/forum/topic.php?id=2161

There used to be a post regarding how to open an account for demat'ing shares. Does anyone have any ideas where it went? I would love to make it a sticky since sooner or later everyone will need it.