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    With the implementation of online centralized KYC, it is no longer possible to fill IPO in the name of another

    Kathmandu. For the convenience of share investors, CDS & Clearing Limited is going to launch KYC, i.e. system of registering their personal details online. CDSC has started developing such a system so that the share investors do not have to go to various banks and institutions to register KYC.

    However, after the approval given by the Nepal Securities Board last November, CDSC had started its preparations.

    “Once this system is implemented, investors will not have to go to banks to fill up KYC. It also helps in centralizing the details of investors. CDSC spokesperson Suresh Neupane said that it is easy to collect the details of investors.

    According to him, while collecting the details of investors from KYC, information will be obtained as to who filled the shares and from where, so the tendency of one person to fill IPO in the name of many people will be controlled.

    Similarly, CDSC is confident that the money earned illegally will be stopped from being invested in the stock market as the source of income of the investors will be found on the basis of KYC.
    This technology will also make it easier for the investor to get details like bank account, transaction, source of transaction, broker company etc.

    CDSC CEO Purna Prasad Acharya said that it would take another five to six months for the software to be implemented.
    Stating that he could not give time for this due to other work process, he replied that the work could not start on time. ‘The system was being prepared.

    In the meantime, various activities related to capital gains tax have been affected, he said, adding that “applications for software development are being evaluated.”
    Stating that the work of the system has not progressed as planned till now, CEO Acharya said that the work will start at a fast pace from next week.

    “It is estimated that it will take about three months to develop the software,” he said. “Once it is ready, it will take another three months for the software to be fully implemented.”
    He also said that after the implementation of this system, investors will not have to fill up their KYC again and again.

    Once the investor fills in the KYC, an ID number will be provided, he said.


    Currently, 11 companies have applied to develop the software. Among them, three companies Professional Computer Systems, YCO Pvt. Ltd. and Radiant Infotech Nepal have been shortlisted.

     

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