CDSC (CDS and Clearing Limited)
CDS and Clearing Limited (CDSC) is the central depository and clearing house of Nepal, maintaining digital records of all shares and operating MeroShare.
Detailed Explanation
Established on August 30, 2010, as a wholly-owned subsidiary of NEPSE, CDSC eliminated physical paper share certificates in Nepal. It operates under the Central Depository Services Regulations 2067. CDSC manages the central electronic depository ledger, issues 16-digit Beneficial Owner Identification (BOID) accounts through licensed Depository Participants (DPs), settles secondary market trades within T+2 days, and operates the national MeroShare and C-ASBA platforms.
Why It Matters to You
CDSC guarantees the security of your equity ownership. By centralizing digital depository books, it ensures shares cannot be forged, duplicated, stolen, or lost in physical transit.
Where It Is Commonly Used
- MeroShare portal (meroshare.cdsc.com.np)
- IPO allotment result checking
- EDIS transfer slips
- Annual Demat maintenance renewal
Key Advantages & Limitations
Key Advantages
- Zero risk of physical certificate damage
- Instant online IPO application via MeroShare
- Rapid automated T+2 electronic settlement
Limitations & Risks
- Severe server slowdowns during massive mega-IPO closing deadlines
Common Misconceptions & Beginner Traps
My shares are stored at my broker's physical office.
Brokers only facilitate trading orders; all electronic share units are held safely in CDSC's centralized sovereign depository vaults.
Nepal Financial & Regulatory Context
CDSC charges a statutory flat fee of NPR 25 per executed script trade and an annual DEMAT maintenance fee of NPR 100 plus NPR 50 for MeroShare renewal.