Nepal Stock Exchange (Nepse) suspended share trading for today.
The Nepse decided to suspend share trading – after brokerage firms requested it to – as the share brokers' back office system had some problem to implement the new brokerage commission.
According to Nepse, brokerage firms requested Nepse that they were yet to complete the process for billing transactions according to the reduced commission rate.
Though, the stock market analysts blame lack of coordination among stakeholders for the suspension of share trading, Nepse said that the trading will resume as usual from tomorrow.
The investors were kept in dark all day long citing 'technical glitches' and delay in updating the Broker Back Office System, or the billing system. However, the brokers attributed the suspension of share trading to delay in updating the reduced commission rate in their system. But the company that manages the software – Mandala System – said that the application was ready and there was no reason for halting share trading. "The brokers submitted the billing format only today after carrying out discussions with Sebon and the bourse,” said Mandala’s proprietor Biplav Man Singh. “If the billing format was presented to us on Friday, the trading would be possible today."
Amending the Securities Businessperson (Stock Broker, Securities Dealer and Market Maker) Regulations 2008, Securities Board of Nepal (Sebon) had directed the Nepse on July 20 (Wednesday) to implement the revised broker commission from Sunday.
But Nepse sent the official letter to the brokers asking for immediate implementation of the new regulation only on Friday.
Mandala – upon receiving the direction – had sought a week’s time to update the system. The broker community has asked the software management company to update the system by mobilising additional human resources to facilitate trading from Monday, according to a press release issued by the Stock Brokers’ Association Of Nepal. "The association and its members are committed to facilitating trading from Monday," it said, apologising to all the investors for the inconvenience caused because of technical difficulties.
The brokers today also held separate discussions with officials from Sebon and Nepse before submitting the new billing format to the Mandala. The brokers have also claimed that they have welcomed the move to reduce the commission rate.
The Nepse decided to suspend share trading – after brokerage firms requested it to – as the share brokers' back office system had some problem to implement the new brokerage commission.
According to Nepse, brokerage firms requested Nepse that they were yet to complete the process for billing transactions according to the reduced commission rate.
Though, the stock market analysts blame lack of coordination among stakeholders for the suspension of share trading, Nepse said that the trading will resume as usual from tomorrow.
The investors were kept in dark all day long citing 'technical glitches' and delay in updating the Broker Back Office System, or the billing system. However, the brokers attributed the suspension of share trading to delay in updating the reduced commission rate in their system. But the company that manages the software – Mandala System – said that the application was ready and there was no reason for halting share trading. "The brokers submitted the billing format only today after carrying out discussions with Sebon and the bourse,” said Mandala’s proprietor Biplav Man Singh. “If the billing format was presented to us on Friday, the trading would be possible today."
Amending the Securities Businessperson (Stock Broker, Securities Dealer and Market Maker) Regulations 2008, Securities Board of Nepal (Sebon) had directed the Nepse on July 20 (Wednesday) to implement the revised broker commission from Sunday.
But Nepse sent the official letter to the brokers asking for immediate implementation of the new regulation only on Friday.
Mandala – upon receiving the direction – had sought a week’s time to update the system. The broker community has asked the software management company to update the system by mobilising additional human resources to facilitate trading from Monday, according to a press release issued by the Stock Brokers’ Association Of Nepal. "The association and its members are committed to facilitating trading from Monday," it said, apologising to all the investors for the inconvenience caused because of technical difficulties.
The brokers today also held separate discussions with officials from Sebon and Nepse before submitting the new billing format to the Mandala. The brokers have also claimed that they have welcomed the move to reduce the commission rate.
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