Demat accounts with no shareholding and no activity for a long time are now set to be suspended, while those that have not been renewed for over five years will be closed. This provision is part of the Securities and Commodities Market Policy and Program for the fiscal year 2082/83, announced by the Securities Board of Nepal (SEBON) on Wednesday.
SEBON has already instructed the Central Depository System and Clearing Ltd. (CDSC) to implement this provision. Under the new directive, demat accounts with no securities and no renewal for five years can be closed. If the renewal fee has not been collected before closure, it will be waived.
Moreover, depository members must submit fees to CDSC only after collecting renewal charges from account holders. SEBON has also asked CDSC to propose necessary amendments to the relevant regulations to formalize this arrangement. The objective is to improve efficiency in the capital market by removing inactive and unused accounts from the system.
