Nowadays, due to online trading systems, it has become extremely easy to trade through a demat account. We can buy or sell stocks with a single click using our phone, thanks to the online platforms provided. The Depository Participant facilitates the transfer of shares from the seller’s account to the buyer’s account.
How many days will it take to credit allotted shares on the demat account in Nepal?
As of January 24, 2021, CDS & Clearing Limited CDSC has unveiled an official notice, that the domestic stock market should use the T+2 trading settlement.
This means the trading settlement should be completed within 2 business days from the transaction date, with the allotted shares being credited to the respective demat account in Nepal.
How many days does the issue manager take to allot IPO and FPO shares after the closure date?
The Securities Board of Nepal (SEBON) states that the issue manager must publish the IPO result / complete the share allotment within specific timelines based on the number of applicants:
- 30 days for less than 2 lakh applicants
- 40 days for 2 to 3 lakh applicants
- 50 days for over 3 lakh applicants from the public issue closure date.
Conclusion:
In summary, the ease of online trading through demat accounts has revolutionized stock transactions, with a T+2 settlement period in Nepal ensuring swift share transfers within two business days. The Securities Board of Nepal has set specific timelines for issue managers to allot IPO and FPO shares based on applicant numbers, promoting efficiency and transparency in the stock market.