Licensed Depository Participants in Nepal 2023

Depository Participants (DPs) link investors and the securities market by providing depository services to the investors.

DPs help investors open and maintain DEMAT (Dematerialized) accounts, which hold investments in electronic forms, such as IPO, Mutual Funds, and Equities bought from secondary markets.

DPs act as a bridge between the investors (you) and the depository (CDS and Clearing Ltd), ensuring that the securities are credited and debited from the investor’s account in a timely and efficient manner.

Depository in Nepal

CDS and Clearing Limited is the only depository in Nepal established in 2067 B.S. to provide dematerialization services for securities.

List of Licensed Depository Participants

According to the official CDS and Clearing Nepal, there are 86 Licensed Depository Participants in Nepal, and you can check out the full table below.

Choosing a Depository Participant

It is an important decision as they hold and manage trades in the securities market. Below are some factors that I considered while choosing a DP:

1. Customer support

These days we do not have time to visit the branch for every little issue, and if our DPs have poor and limited customer support,

a. Mode of contact: For those who hate visiting offices or calling for a minor issue, contacting through websites, social media chats, and emails is a must.

b. Response time to queries: Imagine you have a problem or question, and you email them, and they reply to you after a week. This is one of the most frustrating.

c. Customer service availability: What is the point if no one is available during need?

d. Resolution of disputes and errors: If there is an error, how fast positively they respond.

2. Conveniences

This is another factor when choosing a Depository Participant. A DP that is easily accessible(near where you live), either through a branch network or online facilities.

3. Charges

In Nepal, most DPs have similar charges, but you can still compare the charges for services such as account opening, annual maintenance, and transaction charges.

How to Buy or Sell IPO: Depository Participant

As you already know to apply for an IPO in Nepal, you need a DEMAT and Meroshare account, and you can get that through a Depository Participant listed above.

1. Apply for IPO: Once you have a DEMAT account, you can directly apply for an IPO from meroshare.

2. Allotment of Shares: In Nepal, there are more than 5.5 million DEMAT accounts, of which more than a million applicants apply for IPO these days, so only a few lucky applicants are allotted. The shares will be credited to your DEMAT account if you get it.

Only 10 units are allotted through a lucky draw as more applicants apply than the issued units.

3. Trading: If you wish to sell those shares, then you need to have a Brokerage Account, which will place the buy or sell order on your behalf of you, and the DP will transmit the instructions to the depository. The depository will execute the transaction and update your DEMAT account accordingly.

You can open an account with a Broker Online or visit their office physically.

Note: Online applicants need to visit the Broker’s office for KYC.

4. Holding: If you want to hold equity, then there is no need to do anything unless you need to Renew your DEMAT Account.

FAQ