CDSC has sought approval from Securities Board of Nepal (SEBON) to implement the system.
The company decided to implement the system after the recent IPO of Ghorahi Cements drew extremely high number of fake applications.
Implementation of the ‘real time IPO verify system’ will curb fake applications in any IPO. The system will immediately verify the amount available in the bank account of the applicant while applying for shares through Meroshare. The system will then approve or reject the application in the real time.
As per CDSC, it has already successfully tested the system. However, it need approval from SEBON to implement. Once SEBON approves the system, it is planning to implement the system from the beginning of the upcoming FY.
Moreover, broker companies and investors are demanding that system should be implemented in the secondary market as well, however, Nepal Stock Exchange (NEPSE) has been ignoring the topic since long.
