Print Edition - 2014-08-30 | MONEY
Nepse shortlists three foreign firms
Aug 29, 2014-
In its bid to implement the online trading system, Nepal Stock Exchange (Nepse) has shortlisted three foreign firms for recommending the business requirement specifications.
The firms are South Korea’s Korea Exchange, Japan’s Daiwa Institute of Research and Hong Kong’s The International Securities Consulting.
These firms were shortlisted from among 10 companies that submitted the expression of interest (EoI). Nepse had called for the EoI on April 3 for international companies for the second time, after its first EoI call on February 4 failed to attract competitive domestic companies.
besides the three shortlisted firms, other submitting the EoI are Anukriti Management and Financial Consultant; Ernst and Young, Sri Lanka; Kocher Consultant; Nomura Research Institute Financial Technology; Pricewater-houseCoopers, India; SRS Consulting; and Tiger LLC.
Nepse said the three companies were shortlisted based on their business strength. “We have shortlisted these companies based on several factors, including their annual turnover, number of their employees with them, goodwill in countries where they were doing their business, and their working status in various under developed countries,” said Nepse General Manager Sitaram Thapaliya.
Of these companies, Nepse will to select one within the next one month. “The finally selected consultant will advise Nepse to either upgrade the existing software or to replace it with a new one,” said Thapaliya, adding they would consider the financial proposal of these companies for the next stage of selection. “Through the bidding process, we will hire one as per the Public Procurement Act.”
According to the Nepse, the company selected through the bidding in the second stage will also provide a complete strategic plan for the capital market. “The company will carry out the ‘gap analysis’ to find out the actual need for promoting the existing market to a complete online trading system,” said Thapaliya.
Nepse’s present system only allows electronic stock trading. The rest of the process has to be done manually. After the proposed automation system is implemented, investors will not have to visit the concerned stockbrokers even to book their buying and selling orders. In addition, it will also enable brokers to forwarding the necessary trading documents to the CDS and Clearing through online.
After the final selection, the company will be given time frame of the three months to complete its tasks. “Following which we will then call for tender for the new companies to upgrade the existing software or to install the new software,” Thapaliya said.
Published: 30-08-2014 09:28