Kathmandu
Tuesday, August 26, 2025

Inactive and zero-balance demat accounts to be suspended

July 24, 2025
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KATHMANDU: Demat accounts with no securities and those not renewed for five years will now be suspended.

Similarly, accounts holding no shares at all will also face a freeze. This provision has been introduced in the Securities and Commodities Market Policy and Program for Fiscal Year 2025/26, published on Wednesday by the Securities Board of Nepal (SEBON).

SEBON has already directed the concerned body, CDS and Clearing Limited (CDSC), to implement the new provision.

The Board has instructed CDSC to revise existing regulations to allow for the closure of demat accounts that have not been renewed for five years and those without any securities holdings.

In cases where such accounts cannot generate renewal fees during closure, exemption provisions will apply.

Moreover, deposit members must collect the renewal fee before transferring it to the central depository company. SEBON has directed relevant amendments to the regulations to be submitted accordingly.