CDS and Clearing Limited (CDSC) & IPO Process in Nepal

Details

CDS and Clearing Limited (CDSC) is a subsidiary of NEPSE established in 2010 to operate as Nepal's central depository of securities. It manages the popular Mero Share online platform.

Key Functions of CDSC

Dematerialization (Demat): Electronic holding and transfer of shares.
Clearing and Settlement: Settlement of trades executed on NEPSE within a $T+3$ timeline (Transaction day plus 3 business days).
Mero Share Platform: Facilitates online IPO/FPO applications, Demat profile viewing, and portfolio tracking.

IPO Process in Nepal

Approval: A company gets approval from the Securities Board of Nepal (SEBON) to issue shares.
Application: Investors apply online through Mero Share using the ASBA (Application Supported by Blocked Amount) / C-ASBA system.
Allotment: If oversubscribed, allotment is decided through an automated electronic lottery (minimum allocation is usually 10 units).
Listing: Allotted shares are credited to Demat accounts and listed on NEPSE for secondary market trading.

Category

Stock Market

Fiscal Year

2082

Key Figure/Rate

T+3 settlement, ASBA via Mero Share