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Depository Participant & Demat Account
Depository Participant & Demat Account
What is a Depository?
A depository facilitates the safekeeping, deposit, withdrawal and transfer of securities in an electronic form. The investor needs to open a Demat account to be able to use the facilities provided by depository.
Who is a Depository Participant (DP)?
A Depository Participant is, generally, a bank or financial institution, stock broker, registrar and transfer agent (RTA), who act as an agent of the depository who has received the registration certificate from the Security Board of Nepal and the membership license from CDSC.
What services does Siddhartha Capital provide as a DP?
As a Depository Participant, SCL shall provide the following services to the securities investors;
- Open De-mat account of securities investors as a beneficial owner (BO)
- De-materialization of securities held by the beneficial owner (BO),
- Re-materialization of securities
- Maintain record of securities in the electronic form
- Settlement trades by transferring/receiving the securities from/in BO accounts,
- Settlement of off-market trades that is occurred between BOs outside NEPSE
- Provide electronic credit of securities allotted by issuers during IPOs
- Deposit the non financial corporate benefits (such as: bonus, right shares, etc.) issued by issuers in the de-mat account of BOs
- Facilitate in pledging of dematerialized securities
- Other services as allowed by laws and regulations in regard to securities depository.
Note: All of the above services can be availed from any branches of Siddhartha Bank Limited across the country.
The following documents needs to be followed to open a DEMAT account:
- Completely filled up DEMAT account application form with signature and thumbprints, sitemap of BO’s residence and bank account details.
- Copy of NRN certificate in the case of Non-Residential Nepalese.
- Copy of guardianship certificate in the case of minor.
- Copy of Citizenship Certificate (both sides)
- Passport Size Photo (Photo of both minor and guardian in case of a minor)
Once, the DEMAT account is created, the BO will receive Depository Participant ID (DPID), Client ID and reference number.
Once, the BO receives the reference number, the following steps should be followed to open a Mero Share account:
- Fill up a form to Open your Mero Share Account
- Get your Username and Password for Mero Share login
- Log in to Mero Share and change your password
- Get your C-ASBA Registration Number (CRN) by filling up the CRN form.