Kathmandu, September 9
Due to insufficient preparation, Nepal Stock Exchange (Nepse) has failed to launch the fully automated electronic trading system of shares in the secondary market. Earlier, the Nepse had said it would apply the online trading system from July 17.
“Works to launch the electronic trading system are still ongoing. The software that will be used for the online system has 16 components, which include pre-trading, trading and post-trading provisions,” said Murahari Parajuli, spokesperson for Nepse. “Tests for components like order placements and new listings are being carried out.”
On July 3, Nepse had tested the User Acceptance Testing (UAT) of the software to create online stock trading system, which will allow investors to post purchase and sell orders and provide them payment, clearing and settlement facilities.
“We are going to introduce the fully automated online trading system of shares to make the secondary market more systematic, effective and investor-friendly. But it will take a few months more to implement the system,” Parajuli added.
As per Parajuli, some provisions of the software test are still remaining and some issues related to the software will be sorted out once the system starts functioning.
The service was initiated in line with demand of investors and Securities Board of Nepal — securities market and commodities exchange regulator of the country.
Meanwhile, Nepse had earlier conducted a test of the software to be installed for online trading, which has been developed by YCO Pvt Ltd. Nepse had purchased the software from YCO Pvt Ltd at a cost of Rs 6.4 million.
A version of this article appears in print on September 10, 2018 of The Himalayan Times.