Kathmandu. KATHMANDU: With an aim to make the investor identification system more systematic, secure and credible in the capital market, the national identification number will be mandatory while opening a new demat account from July 17. In addition, the provision of providing a national identity number will be mandatory while updating the KYC (customer details) of the existing Demat account.
According to the notice issued by CDS and Clearing Limited, this provision is being implemented as per the decision of the meeting of the Board of Directors of the company held on May 27.
As per the new provision, all investors opening a new beneficiary account after July 1 will have to mandatorily submit a national identity number. Similarly, the National Identification Number will also have to be included while updating the details (KYC) of the Demat account opened earlier.
According to the CDS, with the significant increase in the number of demat accounts in recent years, the national identity system is being integrated with the capital market to develop a unified identification system of investors and to control duplicate or erroneous details. This arrangement is expected to make investor data management more effective and strengthen transparency, accountability and regulatory oversight in capital market.
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