Jul 8, 2017- The Nepal Stock Exchange (Nepse) will be entering a new era on November 7 when it goes fully automatic. The country’s only stock exchange has planned to launch a fully automated online trading system.

Share traders will then be able to post buy and sell orders and observe related information on their computers, freeing them of the need to depend directly on stockbrokers, Nepse said on Friday.

The semi-automated system currently in operation allows stocks to be traded electronically via stockbrokers. The rest of the process has to be done manually. After the proposed automation system is implemented, investors will not have to visit their stockbrokers even to book buying or selling orders.

In 2007-08, Nepse adopted a partial automation system replacing the open outcry system under which brokers shout prices and offers to each other. Since then, the stock market facilitator has been mulling to install a fully automated system. Nepse speeded up preparations after the court cleared the way for its software vendor YCO six months ago.

In March 2016, Nepse awarded a contract to create software to YCO, but the software company was unable to start work after the Securities Board of Nepal, the capital market regulator, disqualified it for not meeting the criteria. Nepse General Manager Sita Ram Thapaliya said that the vendor had completed most of the platforms necessary to implement a fully automated trading system. “The company needs to cover up only a few models in the line,” Thapaliya said.

After the new automated system comes to operation, investors will have to obtain a user ID and password from their stockbrokers. Share traders can then post their buy and sell orders and observe the market depth. They will need to have a bank account to conduct online stock trading.

Currently, 13 systems such as settlement, matching listing, security and surveillance, among others, are handled by a single integrated router. According to Nepse, the fully automated online trading system will incorporate all these actions under separate routers ensuring efficiency in the stock trading system.

Thapaliya said the new system would feature a risk management system to safeguard the interest of share investors. “The risk management system will be monitored via the concerned stockbrokers, Nepse and CDS and Clearing,” said Thapaliya, adding that they would increase the transaction limit for stockbrokers to increase access to their clients.

Nepse will open the fully automated online trading system on a trial basis in mid-August. “Based on the feedback received, we will make the necessary changes within two months to ensure that the fully automated system is foolproof,” Thapaliya said.

As part of the preparations to implement the fully automated online trading system, Nepse has introduced an electronic stocks system and allowed stockbrokers to open remote work stations outside the Kathmandu Valley. Currently, stock trading can be done from 22 locations in various parts of the country.

Source: The Kathmandu Post

Corporate News

Bank deposits growing at almost half the rate of loan expansion

Kathmandu, January 11 - Bankers seem to have largely ignored the credit crunch situation of the last fiscal, as credit expansion of banks is almost double than deposit collection in the first five months of the current fiscal.

Read more ...

SEBON directs hydel companies to disclose financial details before issuing IPO

Kathmandu, January 1 - Securities Board of Nepal (SEBON) has directed hydropower companies to publish a public notice disclosing their net worth and per share income before issuing initial public offering (IPO).

Read more ...

NRB issues foreign employment bonds

KATHMANDU, Dec 13: Nepal Rastra Bank (NRN) is issuing foreign employment saving bonds of Rs 500 million, targeting Nepalis working and residing abroad or those who have recently returned from foreign employment.

Read more ...

NRB proposes threshold for digital payments

Kathmandu, November 30 - Nepal Rastra Bank (NRB) has proposed the threshold for digital payments under card facilities, electronic wallet and mobile banking, and is seeking inputs from stakeholders before issuing a directive to the service providers.

Read more ...
Symbol % Change Last Price Turnover
SLBS 3.8751 965.0 19,120.0
SDESI 1.9718 362.0 3,982.0
SKBBL 1.8644 1,202.0 63,118.0
RBSPO 1.5259 12,775.0 31,031,210.0
RBCL 1.5132 13,350.0 2,127,390.0
Symbol % Change Last Price Turnover
NIBLPF -10.0000 9.0 14,261.0
UMHL -5.3812 211.0 1,808,979.0
GILB -3.8862 1,385.0 284,218.0
ARUN -3.6810 157.0 278,100.0
MPFL -3.6667 289.0 37,246.0
Symbol % Change Last Price Turnover
ODBL 0.4386 229.0 35,464,504.0
RBSPO 1.5259 12,775.0 31,031,210.0
PLIC -1.0391 1,619.0 16,548,109.0
BOKL -2.1164 370.0 11,816,515.0
CCBL 0.0000 200.0 11,343,876.0