As a Depository Participant (DP), Laxmi Capital Market Limited shall open demat account of beneficial owner (BO), de-materialize securities, re- materialize securities, maintain record of securities in the electronic form. Demat account can be opened at DP license holder institutions from CDS and Clearing Limited. Laxmi Capital Market Limited is a DP License holder institution from CDS and Clearing Limited.
What is Dematerialization (Demat?)
• Dematerialization is a process of converting physical share certificates into electronic form.
• Demat facility was introduced on August 17,2015 by CDS & Clearing Limited (Depository) with the objective of creating a healthy and an efficient investment environment.
• A Depository Participant (DP) is an agent of the Depository who has received the registration certificate from the Security Board of Nepal and the membership license from CDSC. Laxmi Capital Market Limited is a DP License holder institution from CDS and Clearing Limited.
• A Beneficial Owner (BO) is the person who has opened the demat account with CDSC through a registered DP.
What are the purposes of opening a demat account?
• To convert the physical securities into the electronic form.
• To deposit and transfer the NEPSE listed securities in dematerialized form.
• To credit the securities allotted through IPO and corporate actions (such as right share issue, bonus issue, merger, etc.) in a dematerialized form.
• To receive the statement of the securities held in a demat account.
• To pledge the securities held in a demat account.
• To rematerialize the securities held in a demat account.
Why demat is important?
• Dematerialization of physical share certificates significantly reduces the handling cost for both the investor and the company.
• Dematerialization reduces the problems of share duplication, fake signatures, signature mismatch, risk of loss or theft and share transfer issues.
• With dematerialization, the trading of securities become faster for making the capital market more efficient.
• Dematerialization makes it easier for the investors to hold, transact and keep track of their investments at a very minimal cost.
Documents required and charges associated with opening a demat account:-
• Copy of citizenship
• Photograph - (page 1)
• Bank account detail and other information as required
• In the case of minor
– Copy of citizenship of the guardian
– Copy of birth certificate
– Photograph - (page 1)
For Institutional Investors
– Copy of PAN
– Copy of registration certificate
– BOD minute with signature authority
– Copy of MOA / AOA and other information as required
Charges
– Account Opening Fee - NPR 50.00
– Annual Account Maintenance Fee - NPR 100.00
– Share Transaction Fee - NPR 25 per transaction
Dematerialization Procedure
• Firstly, open a demat account at any DP license holder institution which generally takes 1 to 3 business days.
• Secondly, a demat request form must be filled, enclosing the list of shares and authorized signature. Then physical shares need to be deposited at Depository Participant (DP).
• The DP will enter the share details into their system generating a unique code called DRN (Demat Request Number) which will represent the client’s shareholdings at RTS.
• The process of Dematerialization takes normally 15 business days (depending upon service of respective RTS/RTA).
• After the shares are dematerialized, the client can sell their shares through registered brokers of NEPSE.
• Post Dematerialization, every purchase of share is automatically credited to the client’s demat accounts and sell of shares debited from the client’s demat accounts. However, the client has to issue a DIS (Debit Instruction Slip) cheque and present it to the broker at the time of executing a sell order.
Further Information
• Customers can check their demat statement online at LxC website. Customers can also download Laxmi Capital Mobile Apps from Play store / Apple store.
• Customers can also check their demat statement through mobile messaging by typing “SHARE” and sending it at 32002 from registered mobile number (Please ensure that customers have registered their mobile number in the application form). Only Balance of securities dematerialized at LxC will be shown in the statement. If the customer has not dematerialized their securities at LxC it would not be reflected in the statement.
• Customer can also access “Mero Share” application developed by CDSC for online statement.f3gh54ehyx|0030F7E8Contents|Long_Description
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