Skip to content

Sebon Doesn’t Issue Circular to Investors Mandatory for Demat and KYC Update

nabil
global ime

{{TAG_OPEN_div_28} Kathmandu. Investors in the stock market have been facing problems as the Securities Board of Nepal (SEBON) has not issued clear instructions regarding the provision of making the national identity card mandatory. Investors have been facing problems after broker companies started making the national ID mandatory while updating demat accounts, TMS, KYC and other details.

Sebon had issued a circular to broker companies and other concerned institutions to implement the provision of mandatory national identity card for updating TMS, Demat account and opening a new account. On the basis of this circular, broker companies have been asking for national identity cards from investors.

The government was preparing to make the national identity card mandatory for opening bank accounts, renewing and availing various services. However, after the change in the system in this regard, banks and other government agencies have not made the national identity card mandatory for the delivery of services. In the stock market, broker companies are demanding a national identity card while the old directive of SEBON remains.

Broker companies have been asking for a national identity card while renewing TMS, Demat account update and revising KYC details. This has especially troubled investors who have not made a national identity card, are taking time to make it and are not able to update their details. Investors have complained that they have to face additional hassle in changing the general details or even renewing the account.

According to the representatives of the broker companies, the main purpose of making the national identity card mandatory is to verify the identity of the client, control possible financial crimes, and facilitate the investigation of fraud and money laundering. They say that this provision has been made to ensure the real identity of the investor.TAG_OPEN_div_20

According to a broker, in case of fraud or other financial crime by an investor, the broker company may also have to be held accountable during the investigation. Therefore, brokers are careful to keep the official documents that prove the identity of the client.

According to Bhakti Ram Ghimire, general secretary of the Stock Brokers Association of Nepal, SEBON should issue a clear circular on whether or not to make the national identity card mandatory. However, since the board has not issued another directive not to make it mandatory, the broker companies are continuing with the previous system.TAG_OPEN_div_16

According to him, the broker companies are asking for a national identity card as per the instructions issued by SEBON initially. Although the board has made a provision that it is applicable only to investors who open a new account and it is not mandatory for old investors, there is a problem in updating details like KYC, Demat etc. in practice.TAG_OPEN_div_14

Prabhu
sikhar insurance

प्रतिक्रिया दिनुहोस्

citizen life
MAK 4T
Gili
CG Digital