Big step for NEPSE; to start a fully automated online trading system

ShareSansar August 28:

Yesterday,  a notice was published by NEPSE  regarding  invitation for bids to establish a fully automated online trading system which signifies NEPSE is taking yet another big leap for the development of the share trading system.

NESPE will be a fully Automated Online Trading System within a few years.This system will allow investors to execute and monitor the trades, making trading easier and faster. The bank accounts of the investors and traders will be linked to the trading system which will enable investors/ traders to trade easily from their premises.

Central Depository System and Clearing Limited (CDSC), a subsidiary company of NEPSE,seems to be functioning in full fledge to get the shares of listed companies dematerialized. At present there are 106 companies being traded in DEMAT form and it is believed that by the end of current fiscal year the  shares of all the listed companies will only be traded in DEMAT form.

The electronic trading and settlement, facilitated by CDSC, would free the traders and individual investors from the hassles and risks associated with physical shares.

The monetary policy for the fiscal year 2072/73 is also focusing to develop a sound online payment system, and promote financial services.

When NEPSE opened its trading floor on January 13, 1994 it had adopted an "Open Out-Cry" system for the transaction of securities which meant transactions of securities were conducted on the open auction principle on the trading floor at Nepal Stock Exchange itself.

Later in the year 2007open outcry system was dissolved and semi automated system was established. NEPSE has been using that same system till now. This system is based on the private network system, whereas the fully automated online system will be based on the public network system.