Nepse extends share trading hours to four

- Prahlad Rijal, Kathmandu
A swelling number of investors after the implementation of the Demat ssytem in share trading have been cited as the reason for the increase in pressure and the need to implement reforms

Jul 16, 2016-Nepal Stock Exchange (Nepse) has extended the trading hours from three to four hours, effective from Sunday.

The secondary market will now remain from 11:00am to 3:00pm.Nepse General Manager Sitaram Thapaliya said the trading hours were increased to address demands for the same from investors amid market growth intensifying transaction clearing pressures. The Investors had been complaining they didn’t have enough time to forward their buying and selling decisions before the market is closed.

The brokers had also been complaining about the pressure they were facing to register transaction data on the system because of the limited trading hours amid surged transaction volume lately.

A swelling number of investors after the implementation of the Demat (electronic clearing system) in share trading have been cited as the reason for the increase in 

pressure and the need to implement reforms.

The Securities Board of Nepal (Sebon) has been time and again forwarding its directions to the bourse to prioritise implementation of a transaction system which minimises settlement pressure. And, it has welcomed the latest measure taken by the Nepse.

“Keeping in mind the increasing volume of transaction and the necessity to improve services for the investors, the Sebon has welcomed the decision to add one more hour to the trading time,” said Sebon in a statement.

However, the board also raised some issues which it says are yet to be addressed—the need for adding clearing banks, improving transaction system, addressing clearing issues of pay in and pay out and implementing reforms like settlement guarantee fund and auction market.

The broker community has also taken the Nepse decision positively, stating other functions like CDS (Central Depository System) and clearing should 

operate faster to handle the increased number of transactions. 

“It is a good initiative by Nepse,” said Priya Raj Regmi, president of the Stock Broker’s Association of Nepal. “Now the focus should be on enhancing the depository 

and clearing and settlement services. Moreover, the operational pressure faced by brokers will also ease a bit.”

Currently, there are 50 clearing members and 56 licensed depository participants in the CDS. The number of shares in Demat format has reached 922.527 million.

 

Published: 16-07-2016 11:43

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