India to provide support for CDS

KATHMANDU: India has agreed to support in establishing Central Depository System (CDS) in Nepal.

An agreement on technical support

of IRs 92 million was signed during the

recent visit of Prime Minister Madhav Kumar Nepal to India between Nepal and India’s Central Depository Services.

After the implementation of Central Depository System, the Nepali capital market will be more transparent and discrepancy rates will be significantly reduced, Nepal Stock Exchange Ltd (Nepse) said.

According to Nepse, the implementation of Central Depository System will also increase two-fold the volume of transactions and touch Rs 43.36 billion within six months.

“In five years, transactions will have increased to Rs 433.62 billion,” Nepse said adding that the market capitalisation will

also reach Rs 44.31 trillion by that time,

if the Central Depository System (CDS) were to come into operation.