Print Edition - 2016-12-28 | MONEY
Tussle delays plan to introduce automated trading platform
Dec 28, 2016-
The plan to introduce ‘fully automated online trading system’ has been delayed due to tussle between Nepal Stock Exchange (Nepse), the stock market operator, and the Securities Board of Nepal (Sebon), the securities market regulator.
Investors and other stakeholders of the stock market have long been asking
Nepse to upgrade its software installed nearly a decade ago.
The conventional software, they have repeatedly said, has started encountering multiple problems, hindering smooth functioning of the trading system.
While these complaints are being made, Nepse, on Tuesday, held a press conference and blamed the regulator for delaying the process of introducing the ‘fully automated online trading platform ’.
Nepse officials said Sebon was unnecessarily taking time to take a decision on purchase of the software.
The stock market operator entered into a purchase contract agreement with software vendor, YCO, on February 16, 2016 to acquire the online trading platform.
But the Sebon intervened in the process and directed Nepse to purchase “internationally-tested software”, which could be used for cross-border trading. The software, Sebon said, should also allow non-resident Nepalis and foreign institutional investors to take part in stock trading.
Nepse Chairman Ramji Regmi said a letter was written to the Sebon explaining technical problems in installing the “internationally-tested system”.
“We asked the regulator to revisit its decision citing it would be too early to get such a system, as the country’s capital account had not yet become convertible,” he said. “In response, the Sebon asked Nepse not to question its judgement.”
As the process got delayed, YCO filed a court case against Nepse which is pending. Nepse General Manager Sita Ram Thapaliya also criticised the regulator for obstructing the process of introducing the ‘fully automated online trading system’.
Brokers seek approval to go beyond Ktm
KATHMANDU: Nepal Stock Exchange (Nepse) on Tuesday said it has initiated the process of allowing stockbrokers to conduct share trading from outside Kathmandu Valley. Nepse made the move after 41 stockbrokers filed applications at Nepse seeking permission to take part in stock trading from outside the Valley. Some of the areas that stockbrokers are keen on working from are: Banepa, Biratnagar, Baglung, Besisahar, Birgunj, Birtamode, Butwal, Damak, Dharan, Hetauda, Itahari, Mahendranagar, Narayanghat, Nepalgunj and Pokhara. These stockbrokers have said they would set up remote workstations to take part in trading from outside the Valley. At present, nine out of 50 brokerage companies are conducting their businesses via ‘remote workstations’. (PR)
Published: 28-12-2016 09:38