Thursday, June 3, 2010

TATA Consultancy may design CDS for NEPSE

Nepse is more than likely to hand out the contract to design the software for much anticipated Central Depository System (CDS) to Tata Consultancy Services (TSC). “After the preparation of software, there will not be any further delay about starting CDS,” informed Shambhu Pant, Nepse’s acting deputy manager and spokesperson.
“Nepal’s CDS will be based largely on Indian Central Depository Services Ltd (CDSL), a sister concern of the Bombay stock Exchange (BSE) as we are undertaking this project under the financial and technical support of BSE,” he added.

The CDS is a new clearing and settlement system being used in stock exchanges abroad. Under the CDS, the current practice of holding and moving the scrip of quoted shares physically will be replaced by a safe and dependable computerized book entry system. When investors trade under the CDS, there will be no need for delivery and receipt of physical certificates. All the physical scrips of the companies listed on the stock exchange will be recorded centrally, and investors will have CDS accounts which will show their holdings. The seller’s account will be debited and the buyer’s account will be credited when shares are traded by the new system automatically as is practised by major stock exchanges the world over.
“The implementation of CDS will do a great deal in encouraging the investors as there will be hassle-free and swift ownership transfer and instant liquidity,” said Surbir Paudyal, Chairman of Securities Board of Nepal.

The increase in volume and number of share transactions after the automation of Nepse had created demand for the establishment of CDS that offers safety and convenience compared to holding securities in physical form, enhances liquidity by instantaneous transfers and delays, thefts, interceptions and subsequent misuse of certificates eliminated.

The implementation of CDS is supposed to be able to wipe out inconsistency and manipulation in stock trading and make the Nepali secondary market more transparent and a significant reduction in discrepancy rates is expected by Nepse.
Meanwhile, the Nepse has started the process to take the exam for new brokers. The process to add new brokers has halted since long.

Oman Airs Direct Flight

The Ministry of Tourism and Civil Aviation has granted permission to Oman Air to operate direct flights between Oman and Nepal. An agreement to this effect was signed between the governments of the two countries in Kathmandu on Wednesday. Oman Air is planning to operate Oman-Kathmandu flights from the third week of June. It plans to operate seven flights a week. The ministry said direct Oman-Kathmandu flights will help Nepal Tourism Year 2011, besides facilitating Nepali workers going to Oman for jobs. Nepal government is planning to attract more international airlines for the success of Nepal Tourism Year 2011.

Tuesday, June 1, 2010

Nepal telecom Reduces International Call

Nepal Telecom (NT) is providing international calls through IP Technology, starting from June 1. The new service can be accessed by GSM enabled postpaid subscribers, PSTN services, CDMA services and pre-paid credit limit account users by using the access code 1424, said the NT that has started the service with an aim to provide customers with service to make international calls making the service convinient and cost effective for users. Customers using the technology can call Canada, China, Hong kong, India, Singapore, Thailand and US at Rs 4 per minute.

NIC bank's lending to industries more

Some eight commercial banks have applied for the refinancing facility from the central bank. Out of the eight commercial banks -Citizens Bank International, DCBL, Kumari Bank, NIC Bank, Global Bank, Prime Commercial Bank, NCC Bank, Kist Bank, Laxmi Bank -Citizens Bank International has already received Rs 430 million.
Similarly, the NIC Bank -that has consistently focused on channeling its credit to productive sectors contributing to the country's economic growth -has also applied for Rs 440 million refinancing facility. As of midApril, it has floated 90 per cent of it's total April, it has flo loan portfolio of about Rs 14 billion in over 2,000 diversified industries and businesses, said the bank.

NIC has floated loans in a wide range of industries including food processing, steel, cloth, yarn, cement, paints, jute, ca paints, jute, carpets, paper, handicrafts, hotels, hospitals, education, agriculture, leather, plastics, cables, bricks, and IT. "It has only around 10 per cent exposure in real estate portfolio," it claimed. The bank -that has a large network of 25 branches spread from Jhapa in the east to Mahendra Nagar in the far west -has announced a 27 per cent growth in net profit to Rs 319 million in the first nine months of the current fiscal year compared with the same period last year.

The mid-term evaluation of the Monetary Policy has introduced refinancing facility to pump in liquidity in the banking system for productive sectors like tourism, hydropower, exports, agriculture, small and medium scale industry and other productive sectors.