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The preparations for implementing Central Digital KYC (Centralized Electronic Know Your Customer) in the Nepali capital market have reached the final stage. The CDS & Clearing Limited (CDSC), the company responsible for providing centralized depository, clearing, and settlement services, has reached the final stage of preparations for implementing Central Digital KYC. In October 2020, the Securities Board of Nepal (Sebon), the capital market regulatory body, issued a guideline related to Centralized KYC and instructed the CDSC to implement Central Digital KYC. "Following the instruction, CDSC had begun the process of implementing Central Digital KYC, which has now reached the final stage," said Suresh Neupane, Spokesperson of CDSC. At present, brokerage companies, merchant bankers, and other capital market service providers have collected customer details digitally and in paper form, but it is not centralized. Customers are required to submit their personal details to every organization related to the capital market. After opening a Demat account, the customer has to fill out KYC even when opening a share account, broker ID, and other accounts. Given the current situation, CDSC has said Centralized KYC is being introduced whereby if customers fill out personal details in one entity, they do not have to again fill KYC to other entities. Currently, central digital KYC is also being tested in some broker companies and merchant bankers. "Now we are testing central digital KYC in some of the entities related to the capital market. And, the result is also very good," said Neupane, adding, "After completing the rest of the preparations, we will implement the Centralized KYC within the next 2 months." Once the Centralized KYC comes into implementation, the customers do not have to go through a troublesome process. According to CDSC, the system (software) of Centralized KYC should be approved by the Department of Information Technology of the Nepal government. With the process for getting approval already initiated, CDSC believes it will get the approval in the next 15 days. However, the agency is yet to determine the service fee to be charged to the customer regarding centralized KYC. According to the company's officials, discussions are ongoing with the Sebon, brokerage companies, merchant bankers, investors, and other stakeholders. "Once we get approval from the Information Technology Department and fix the service fee, it won't take long for us to implement the centralized KYC," said Neupane.

The price of gold has increased by Rs 500 per tola in the domestic market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 102, 300 per tola today. The gold was traded at Rs 101, 800 per tola on Tuesday. Meanwhile, tejabi gold is being traded at Rs 101, 800 per tola. It was traded at Rs 101, 300 per tola. Similarly, the price of silver has increased by Rs 15 and is being traded at Rs 1,270 per tola today.

Insurance companies are now required to allocate one percent of their net profit to corporate social responsibility (CSR) activities. Amending the Corporate Governance Directives 2075, Nepal Insurance Authority (NIA) on Tuesday instructed the life insurance, non-life insurance, and reinsurance companies to allocate one percent of profits by creating a CSR fund. Till now, insurers have been spending funds for CSR in their own way. Now the NIA has made the creation of CSR funds mandatory and also specified the areas where the companies should spend the CSR money. According to Raju Raman Paudel, Executive Director of NIA, insurance companies have now been instructed to allocate money for CSR funds. "Earlier, insurers used to spend money in the CSR activities on their own," said Paudel, adding, "Now onwards, they have to create a fund from one percent of their net profit." According to the NIA, insurance companies have been mandated to use CSR funds for social projects. The directive states that CSR funds should be spent on education, health, natural disaster management, increasing the income-generating capacity of socially disadvantaged groups, insurance literacy, customer protection programs, and programs related to insurance for marginalized groups. Similarly, insurance companies can set up child daycare centers in their offices for the children of their employees through CSR funds. However, insurers have been barred from using CSR funds for the company's brand promotion activities. Insurance companies will have to spend expenses related to CSR proportionally to geographical areas and sectors. Such CSR spending should not be concentrated in one specific geographic region or sector. The directives have also barred the board of directors of insurance companies from spending CSR money for personal or political gain. The boards of the companies have been instructed to create and implement a separate procedure covering the areas identified for corporate social responsibility, the process of evaluating the proposal received for spending in that area, the operation, and management of the fund, etc.

The Nepal Stock Exchange (NEPSE) plunged by 3. 61 points to close at 2,019.93 points on Tuesday. Similarly, the sensitive index dropped by 1. 07 points to close at 381.94 points. A total of 3,946,024 unit shares of 262 companies were traded for Rs 1. 38 billion. Meanwhile, Adhikhola Laghubitta Bittiya Sanstha Limited, Adarsha Laghubitta Bittiya Sanstha Limited and Khaptad Laghubitta Bittiya Sanstha Limited were the top gainers today with their price surging by 10. 00 percent. Likewise, Premier Insurance Company Limited was the top loser with its price dropped by 3. 85 percent. At the end of the day, the total market capitalization stood at Rs 2. 91 trillion.