Print Edition - 2018-04-14 | MONEY
Online system to make life easier for share traders
Traders will have to obtain their login identification and password from their brokerage firm in order to use the online platform
Apr 14, 2018-Share traders will not need to call their brokers to place a sale or purchase order as they will be able to perform this task over the internet.
The Securities Board of Nepal (Sebon) plans to unveil its online interface on Sunday which is designed to save time and effort for investors. In order to use the online platform, traders have to obtain their login identification and password from their brokerage firm.“Using the login and password, investors can post their purchase or sale orders through the concerned brokers,” said Sebon’s deputy spokesperson Niranjaya Ghimire.
Currently, investors have to make a trip to the office of their brokerage firm or call their broker to post transaction orders. Sebon says the new system will provide relief to both investors and brokers.
“Under the system, investors can instantly post their orders from their current location, and brokers can maintain records of the orders placed by their clients,” said Ghimire. Investors can enter their information in the form which is similar to the order slips provided by their brokerage firms, he added.
According to the regulator, it sent circulars to all 50 brokerage firms on Friday instructing them to implement the system. Ghimire said Sebon would be giving access to investors from the beginning of the Nepali New Year 2075 BS.
Sebon has long been mulling to enforce a semi-automated online trading system. The regulator launched the interface due to delays in implementing a full-fledged online trading system, it said.
According to Sebon, the introduction of the partial online system will also lay the groundwork for the launch of a fully automated system. “The new system is expected to provide investors practice before they start using a full-fledged online platform when it is launched shortly,” Ghimire said.
The Nepal Stock Exchange (Nepse) is currently working to get the full-fledged online platform ready which is slated to be launched at the beginning of the fiscal year 2018-19. Software company YCO is reported to have developed 15 out of the 16 modules needed to implement the online trading system.
The partial online system that Sebon has planned to enforce from Sunday will not have an online payment system. “Investors will have to visit their brokerage firm to settle the payments,” Ghimire said.
Stockbrokers had been loath to implement the partial online system complaining that it would increase their work load.
They have also criticised the system as it lacks a payment system. According to Ghimire, stockbrokers finally agreed to implement the platform after some convincing.
Published: 14-04-2018 08:25