Key Takeaways:

• NEPSE resumed trading Tuesday after a technical problem at a brokerage data centre was resolved
• The disruption affected servers of 72 out of 92 licensed brokerage firms hosted at Data Hub Pvt Ltd
• SEBON has ordered an investigation and sought a report from NEPSE by Sept. 28.
• A five-member inspection team has been deployed to assess the cause, impact and systemic risks

KATHMANDU, SEPTEMBER 22 Trading on the Nepal Stock Exchange (NEPSE) resumed on Tuesday after a technical problem at a data centre hosting the servers of 72 brokerage firms was resolved, but the incident remains under investigation over the risk it posed to the country's securities trading system. The disruption occurred at Data Hub Pvt Ltd, where the servers of 72 of the 92 licensed brokerage companies are hosted. NEPSE had suspended Monday's trading session after the problem, which had emerged on September 20, could not be resolved immediately. NEPSE said continuing trading while the problem persisted could have caused damage to its own trading system. The suspension was also sought by the Stock Brokers Association of Nepal until the technical issue was resolved. Although trading has now resumed, the technical cause of the disruption and the broader systemic risks exposed by the incident have yet to be established. The Securities Board of Nepal (SEBON) has directed NEPSE to investigate the incident and submit a report, including measures to prevent similar disruptions, by September 28. The board has also deployed a five-member inspection team led by a deputy executive director to examine the technical problem, its impact and the potential risks to the trading system. SEBON spokesperson Niranjaya Ghimire said the board was concerned about a situation that forced the suspension of securities trading and that measures would be taken to identify and minimise technical risks in the market's trading infrastructure.