Nepal | September 28, 2020

Process to modernise secondary market delayed

Himalayan News Service
Share Now:

Kathmandu, December 27

The much-awaited plan to modernise the country’s only secondary market has been further delayed as the Nepal Stock Exchange (Nepse) and Securities Board of Nepal (SEBON), the securities market regulator, have locked horns regarding the procedural issues of the modernisation drive.

The process to develop a fully automated online trading system has been facing a major hurdle in the procurement of software as SEBON has instructed Nepse to procure an internationally compatible system against its move to procure software through local bidding.

Nepse had started the software procurement process early this year and selected YCO Pvt Ltd for supply, delivery, installation and commissioning of the fully automated online trading system on February 16 through local bidding.

However, the capital market regulator, on March 11, wrote to Nepse objecting the latter’s move and urged it to adopt a global bidding system to acquire an internationally compatible online trading system. SEBON has cited that an internationally credible system is the need of the hour for cross-border listing/trading of stocks to bring investment in the stock market from foreign institutional investors, non-resident Nepalis and others.

However, Nepse has said that even if it decides to install an internationally compatible system abiding by the regulator’s instruction, the system cannot be operated as per international values and norms without the user acceptance testing (UAT) system. And UAT is not possible due to lack of capital account convertibility in the country.

Due to this concern, Nepse had again written to SEBON requesting it to review its earlier instruction. But SEBON wrote back to Nepse reminding it that earlier in 2007, the local bourse had procured the present system through global competitive bidding at a total cost of Rs 31.1 million, and that Nepse had now selected YCO to develop the fully automated online trading system at a total cost of Rs 200 million. As the tussle between Nepse and SEBON dragged on, YCO Pvt Ltd filed a lawsuit at Patan High Court, which has yet to issue a verdict.

The communication between the two parties point towards the fact that Nepse is sticking to its decision to procure software from the local vendor. Nepse has repeatedly corresponded with SEBON on the pros and cons of international bidding rather than abiding by SEBON’s instruction.

Organising a press conference today, Nepse has released all the letters exchanged between the two institutions regarding the tussle. Nepse has claimed in its letter to SEBON that the regulator too was involved while formulating the terms of reference for the online trading system and had a representative during the meeting.

Through this letter it can be understood that Nepse is trying to point a finger at SEBON for the delay in introducing the internet-based fully automated online trading system, but SEBON has categorically denied such claims in its response.


A version of this article appears in print on December 28, 2016 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Students demand justice for Bajhang rape victim in Kathmandu

KATHMANDU, SEPTEMBER 26 Students take to the streets on Saturday demanding justice for a 12-year-old girl whose dead body was found in a temple in Bajhang district on Thursday night. The minor was raped before being killed by the culprit/s. As per local police, investigation into the case in unde Read More...

United earn dramatic win at Brighton with late Fernandes penalty

BRIGHTON: Manchester United beat Brighton & Hove Albion 3-2 away in the Premier League on Saturday after an incredible finale in which Bruno Fernandes struck the winning goal from the penalty spot in the 100th minute of the game. Fernandes's winner, which came after referee Chris Ka Read More...

Chelsea recover from three goals down to draw at West Brom

Chelsea striker Tammy Abraham struck a 93rd-minute equaliser as they battled back from three goals down to draw 3-3 at West Bromwich Albion in their Premier League clash on Saturday. An error by Marcos Alonso led to Callum Robinson opening the scoring for West Brom in the fourth minute and t Read More...

A team of women of Police march past in a programme organised to mark the Constitution day at Nepal Army pavilion in Tundikhel, Kathmandu, on Wednesday, September 19, 2018. Photo: Skanda Gautam/THT

Province 2 threatens to knock Supreme Court door

KATHMANDU, SEPTEMBER 26 Months after the two bills related to adjustment of Nepal Police and Provincial Police were authenticated, provincial governments have not been able to take control of police. As a result, Province 2 government has sent an angry letter to the federal home ministry asking i Read More...

Local levels to resume schools from today in Siraha district

SIRAHA, SEPTEMBER 26 Community schools in Laxmipur Patari Rural Municipality and Mirchaiya Municipality of Siraha, that have remained closed for the past six months are likely to open from tomorrow. Education sections of both the local bodies, by issuing separate notices, decided to open s Read More...

Three persons including campus chief absconding

DHULIKHEL, SEPTEMBER 26 Three persons, including campus chief, have been absconding ever since police issued an arrest warrant against them in Kavre’s Banepa. A fraud charge was filed against three people including Kavre Multiple Campus Chief KJ Baidar in Kavre’s Banepa Municipality, with Read More...

Traffic police expedite monitoring of public vehicles

KATHMANDU, SEPTEMBER 26 Traffic police have expedited inspection and monitoring of public vehicles in Kathmandu valley to ensure that they follow health guidelines and other requirements specified by the government to prevent and control COVID-19. Senior Superintendent of Police Bhim Prasad Dh Read More...

Food, medicines provided to returnees from India

DHANGADI, SEPTEMBER 26 Dhangadi sub-metropolis has been providing free food and health facilities for Nepalis returning from India at border entry point, in Dhangadi. Deputy Mayor Sushila Mishra Bhatta of the sub-metropolis said food and water were being offered to the returnees ever since the Read More...