The newly appointed executive head of Nepal Stock Exchange (Nepse) has
emphasised on making stock exchange trading online in the near future.
“Making internet based share trading possible for investors is one of my top priorities,” said general manager Sitaram Thapaliya who assumed his duties today.
Thapaliya was appointed as general manager of Nepse by the Cabinet meeting held on June 27. Nepse had been without a GM since January 2013, after then GM Shankar Man Singh’s tenure got over. At present, Nepse’s trading system is semi-automated that takes electronic orders from brokers’ portals and matches them, and then executes orders. In order to buy or sell stocks, investors need to approach the brokers to place the orders.
In absence of home-based order placement system, the Nepali stock market has remained elusive to Non Resident Nepalis. They require a trading system that allows them to place buy and sell orders in trading system directly through the portal of their brokers on the system.
“Getting CDS and Clearing Ltd (CDSC) to become fully operational is also important,” pointed out Thapaliya. CDSC that is almost ready to become operational is unable to do so in the absence of clearing members and a small number of companies with dematerialised shares.
With CDSC coming into operation, clearing and settlement of shares traded will take place instantly.
Moreover, Nepse is in dire need of upgrading the existing trading system as it has been facing problems at times. A trading system that can process about 1000 orders within a minute is required, and it should also support the trading of new instruments later on. Likewise, trading needs to be compatible with the central depository system.
“We have yet to decide whether upgradation will be sufficient or the system needs to be completely replaced,” said Thapaliya. Nepse, that had started operations in 1994, used an open-out-cry system for trading until August 2007. In 2007, it moved to screen-based trading by setting up a Wide Area Network that enabled brokers to be connected with Nepse’s server from their offices.
src : THT
“Making internet based share trading possible for investors is one of my top priorities,” said general manager Sitaram Thapaliya who assumed his duties today.
Thapaliya was appointed as general manager of Nepse by the Cabinet meeting held on June 27. Nepse had been without a GM since January 2013, after then GM Shankar Man Singh’s tenure got over. At present, Nepse’s trading system is semi-automated that takes electronic orders from brokers’ portals and matches them, and then executes orders. In order to buy or sell stocks, investors need to approach the brokers to place the orders.
In absence of home-based order placement system, the Nepali stock market has remained elusive to Non Resident Nepalis. They require a trading system that allows them to place buy and sell orders in trading system directly through the portal of their brokers on the system.
“Getting CDS and Clearing Ltd (CDSC) to become fully operational is also important,” pointed out Thapaliya. CDSC that is almost ready to become operational is unable to do so in the absence of clearing members and a small number of companies with dematerialised shares.
With CDSC coming into operation, clearing and settlement of shares traded will take place instantly.
Moreover, Nepse is in dire need of upgrading the existing trading system as it has been facing problems at times. A trading system that can process about 1000 orders within a minute is required, and it should also support the trading of new instruments later on. Likewise, trading needs to be compatible with the central depository system.
“We have yet to decide whether upgradation will be sufficient or the system needs to be completely replaced,” said Thapaliya. Nepse, that had started operations in 1994, used an open-out-cry system for trading until August 2007. In 2007, it moved to screen-based trading by setting up a Wide Area Network that enabled brokers to be connected with Nepse’s server from their offices.
src : THT
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