Good news, one can trade shares online!
"Investors can file purchase or sale orders for shares from home or office online beginning January 13," said Rewat Bahadur Karki, chief executive officer and general manager of Nepal Stock Exchange (Nepse), the government undertaking.
"Though, it's the basic stage of internet trading, Nepse has come of age and adopted a technological revolution in the trading system in the domestic market," Karki said adding that seven brokers have applied for going online. Nepse has permitted these seven brokers to go online through the Basic Internet Based Trading System (BIBTS).
The brokers have to have their own website now so that they can, after agreement with their institutional or personal clients, receive sale or purchase orders on their own websites.
"Nepse will provide the BIBTS software free of cost," said Karki. "But they have to develop their own websites."
However, the process will be completed only after the Central Depository System (CDS) comes into effect. "It's a part of CDS," said Sanjay Amatya of Market Securities and Exchange Pvt Ltd (Broker No 5) that has applied for the internet trading. His firm is developing its own website for internet trading.
Securities Board of Nepal (Sebon) has sent the draft of CDS to the finance ministry a long ago. But the ministry has to prepare Trustee Act before clearing it.
Nepse started trading through Automated Computerised Trading System (Automation) from August 24, 2007. After Automation, Nepse started trading through Wide Area Network (WAN), an extended facility for brokers, who want to trade from their own offices. Almost all the brokers trade from their offices now as they donot need to go to the trading floor at the Nepse.
After WAN connectivity, Nepse took another giant leap by making available to investors real time information. Online trading is the latest and the most revolutionary step of Nepse in the history of Nepali capital market that is only one-and-a-half decade old.
Asian Development Bank (ADB) under the CFG project has supported the whole process of the Nepali stock market automation.
1. Market Securities and Exchange Pvt Ltd (broker no 5)
2. Khandelwal Stock Brokering Company (broker no 17)
3. Nepal Investment and Securities Pvt Ltd (broker no 19)
4. Sweta Securities Pvt Ltd (broker no 25)
5. Shreekrishna Securities Ltd (broker no 28)
6. Trishul Securities and Investment Ltd (broker no 29)
7. Prime Securities Pvt Ltd (broker no 16)
New Sebon chief
Surbir Poudel, newly appointed chairman of the Securities Board of Nepal (Sebon) - the capital market regulator - took charge from Wednesday.