Clearing & Settlement

Wednesday - 11th February, 2009 | ResCon

Under ATS (Automated Trading System), the broker has to fill up all the required information of his/her clients within the system after the transaction takes place.

NEPSE has adopted a T+3 (after 3 days of Trading day) settlement system. Settlement will be carried out on the basis of paper versus payment.

  • “T”: The trading is done

  • “T+1”: The buying brokers have to submit bank vouchers for settlement with covering letter

  • “T+2”: The selling brokers must submit share certificate with covering letter

  • “T+3”: NEPSE prepares billing for payment and this will be forwarded to the bank

For the PAPER, T+3 settlements system is adopted.
For the PAYMENT, T+2 settlements system is adopted.

  • “T+5”: Once the settlement is done, the buying brokers, after consultation with the clients, must decide and present the purchased shares if they want to record it as Blank Transfer. This must be completed within T+5.

And if buying clients do not want to record for blank transfer, the shares should be forwarded for Name Transfer.

Blank Transfer is done to sell the shares immediately (within 15 days of buying). Generally  Name Transfer takes 15 days to 30 days and at times, even more than 30 days (depends on the efficiency of concerned company). Hence, Blank Transfer is done to take advantage from short-term volatility of market price.