Central Depository System and Clearing Limited (CDSC) is a company that provides central depository and clearing services for securities traded on the Nepal Stock Exchange (NEPSE). It was established in 2001 and is the only central depository company in Nepal.
The CDSC acts as a central depository for all securities traded on the NEPSE, which means that it holds and maintains electronic records of securities ownership. When securities are bought or sold, the ownership of those securities is transferred electronically through the CDSC. This eliminates the need for physical certificates and makes the settlement process more efficient.
In addition to the central depository services, the CDSC also provides clearing and settlement services for all transactions on the NEPSE. The clearing process involves the matching of buy and sell orders and the calculation of obligations of the buying and selling parties. The CDSC acts as a guarantor for all trades, ensuring that the settlement process is completed smoothly and efficiently. Overall, the CDSC plays a vital role in the Nepalese capital market by facilitating the efficient transfer and settlement of securities.