SEBON’s decision to authorize CDSC to work on share ownership transfer making the job convenient; Know more who can transfer their share ownerships and how

CDS and Clearing is reportedly making preparations for easy and hassle-free transfering of stock ownership among the household members or after the death of the shareholders. The latest decision is currently under review with Securities Board of Nepal in order to provide some respect to the shareholders who have to travel all the way to Kathmandu for this process which usually take between 2 weeks to 2 months time.

As per the information received, the study is currently being undertaken in order to enable CDSC to perform ownership transfer of stocks after the death of the family members or among the family members with their consent. CDSC has currently formed the working procedure for the same and the detailed outline will be out soon.

Before, Nepal Stock Exchange (NEPSE) has been working as the sole central authority where people from all over the nation used to gather in long queues for having the ownership of the shares transferred among their family members or after their death.

What’s the process of share ownership transfer in Nepal?

The family members who are of same lineage or those who are between the generations of grand father to grand son can transfer their ownerships of the shares that one holds. In case of transferring the ownership after the death of a person, someone who is the closest nominee of the deceased would be entitled to receive the ownership.

In case of transfer of share ownership among the family members, both the parties should submit 2 copies of ownership transfer application at NEPSE including two copies of their respective citizenships, original share certificates, 2 copies of certificates to prove their blood lineage and the bank voucher indicating the clearance of required ownership transfer fee. In case of demat shares, the applicant is supposed to pay 2% of the shares in their face value (Rs 100 for every unit) whereas between 1 to 3% in case of paper share certificates.

For the transfer of ownership following the death of a family member, one should submit copies of applications for transfer of ownership including other documents like 2 copies of death certificate, 2 copies of citizenships of both parties, 2 copies of certificates that prove relationship between the two and the original share certificates. In such a case, an application fee of 0.3% to 0.5% is charged on the base price of the total shares transferred.