Stock market automation: UK firm chosen to undertake work
Kathmandu, November 6:
Comdaq Ltd, a British company, has got a contract for the long-awaited automation of Nepali stock market aimed at modernising it.
The company has received a contract to buy 58 computers and to automate the stock
market for a total of $300,000, which includes their fees as well. As per the agreement reached between Comdaq UK and Nepal Stock Exchange Ltd, automaton has to be completed by April, 2007.
Informing about the automation, which is to start very soon, Rewat Bahadur Karki, general manager of Nepal Stock Exchange Ltd said that the initiative would help in strengthening stock market and increase confidence among investors.
Confidence building in the stock market is being taken as one of the major initiatives of the current management, said Karki while discussing the matter with The Himalayan Times. Modernisation of stock market would ultimately increase share transactions, prevent unwanted risks and benefit investors, shareholders and stakeholders, he said. The outcome of the automation is expected to establish a more scientific share trading system and to increase the stock market’s trading efficiency and expand market, says Karki. The move of the NEPSE would also benefit financial intermediaries, help in bringing into force internet-based trading system for the benefit of shareholders, according to NEPSE.
The open out-cry system is being replaced through automation to expand stock market transactions and cut down on possible risks.
Meanwhile, the management of NEPSE is also going to recruit fresh manpower to modernise it under the VRS scheme. Ultimately, there is a plan to privatise the stock market.
After the appointment as GM of NEPSE, Karki had promised effective reform of the stock market through automation, introduction of VRS, improved recruitment, greater professionalism and a strong administrative reform.
NEPSE officials believe that after the automation, the Nepali stock market would attract huge number of investors, including institutional investors.