Kathmandu. For the convenience of share investors, CDS & Clearing Limited is going to start online KYC, i.e. system of registering their personal details. CDSC has started developing such a system so that share investors do not have to go to various banks and institutions to register KYC.
However, after the approval given by the Nepal Securities Board last November, CDSC had started its preparations. CDSC spokesperson Suresh Neupane said that the implementation of centralized or e-KYC would facilitate the service recipients and curb the trend of one person applying for ordinary shares (IPO) in the name of many illegally in the stock market.
"Once this system is implemented, investors will not have to go to banks to fill up KYC. It also helps in centralizing the details of the investors, 'he said,' It is also easier for us to collect the details of the investors.
According to him, the trend of filing IPO in the name of many people by one person will be controlled as the information of who filled the shares and from where will be obtained while collecting the details of the investors from KYC. Similarly, CDSC is confident that the money earned illegally will be prevented from being invested in the stock market as the source of income of the investors will be found based on KYC.
The technology will also make it easier for investors to get details of bank accounts, transactions, sources of transactions, broker companies, etc. CDSC CEO Purna Prasad Acharya said the software could take another five to six months to be implemented.
He said that he could not start the work on time due to other work procedures. 'The system was being prepared. In the meantime, various activities related to capital gains tax have been slightly affected, 'he said, adding that applications for software development are being evaluated. '
Stating that the work of the system has not progressed as expected so far, CEO Acharya said that the work will start at a fast pace from next week. "It is estimated that it will take about three months to develop the software," he said. "Once it is ready, it will take another three months for the software to be fully implemented."
He also said that after the implementation of this system, investors will not have to fill up their KYC again and again. "Once the investor fills in the KYC, an ID number will be provided," he said. "If you need to change your broker later or need a KYC for other purposes, the same KYC can be downloaded using your ID number."
