New applicants who work abroad can purchase reserved shares but cannot sell them
New applicants who work abroad can purchase reserved shares but cannot sell them. Nepalese who have moved abroad for work can purchase reserved shares, but they cannot sell them. Although it is possible to open a Demat account while abroad, it has been observed that even if they can buy, they cannot sell because there is no way to open an account with the broker company. Through the “Securities Issuance and Allotment (Sixth Amendment) Guideline, 2079,” effective from Kartik 17, the Nepal Securities Board has reserved 10% of the primary issue shares for those employed abroad. Along with the implementation of the directive mentioned above, a provision has been made in the directive for Nepalis who have gone abroad for foreign employment to open a Demat account while abroad.
“For the purposes of this section, the deposit member may open a beneficiary account by electronically submitting customer identification details when opening a beneficiary account for Nepalese citizens employed abroad,” the directive states. As a result of this arrangement, Nepalese who have gone abroad for work can open a Demat account online from the country where they are working. They are not required to be physically present. Previously, investors had to be physically present to open a Demat account. Deposit members will now be able to use this service online.
Investors can apply for 10% shares reserved for those working abroad by adding a remittance account to a new Demat account opened from abroad. However, even if accepted, they must make the journey to Nepal to sell because the rule that you must be present in person to open an account at the broker’s office remains in effect. The directory also states that a Demat account can be opened online, but nothing about a broker account being opened online is mentioned. As a result, the broker companies have stated that they will come to open the TMS account.
“The current revised guidelines allow for online Demat account opening, but they are silent on opening accounts with brokerage firms. As a result, those who opened a new Demat account and purchased shares while abroad can only sell them after opening an account in Nepal “said the owner of a brokerage firm No broker, he claims, has ever allowed a TMS account to be opened without his presence. Moreover, no rule allows you to open a TMS account online.
According to the director, those living abroad should be allowed to fill shares, but the requirement to come to Nepal to sell should be lifted. As a result, the Securities Board should make arrangements to open an account online, even with the broker. “It is not permitted to sell the shares that will be filled. Just as the arrangements for filling shares were made online, so should the arrangements for selling. Otherwise, the person who fills it will be subjected to injustice “He stated.
As there is no provision for online account opening in the broker company, there needed to be more debate about whether or not to include an online provision in the Centralized KYC being developed by the Central Depository System (CDSC). CDSC, on the other hand, is ecstatic about the new guidelines. He also stated that he has decided to include the option of filling out forms online in the upcoming centralized KYC. “We were at a loss for what to do previously because there was no video KYC system. However, because the most recent guidelines mentioned video KYC, we decided to keep that feature “CDSC’s IT department head, Yograj Joshi, stated.
However, the KYC used in it will only be used for Demat accounts. Because there is no arrangement for the broker, the said facility cannot be provided in his case. As a result, the option of opening an account with a broker company is now available online, which will benefit everyone, including those who have relocated to another country for work, according to Joshi.