CDSC fails even in T+3 – thanks to yet another technical glitch of NEPSE
ShareSansar, July 2:
Time and again trading in physical share has been affected due to server-related problems of Nepal Stock Exchange Limited (NEPSE). Now even the transactions of limited number of dematerialized scrip have been affected due to another technical snag of the stock exchange.
Share investors and brokers alike are complaining that the Central Depository System and Clearing Limited (CDSC), a subsidiary of NEPSE, has failed to clear the transactions even in T+3.
Around three to four thousand transactions of demat shares are being carried out under the CDS system a day.
“A lot of investors have been hit hard as they have not been able to settle the transaction at this time of the year when they have to pay interest for marginal lending,” said Chairman of the Brokers’ Association Narendra Sijapati. “This has adversely affected the entire market.”
On the other hand, CDSC, which had been bragging about its capacity to handle transaction of all the listed companies, is squarely blaming NEPSE for the humiliating situation.
“Clearance has been delayed due to some problems with NEPSE’s trading software,” CDSC’s Chief Executive Officer Subodh Sharma Sigdel claimed. “Now that the problem has just been resolved, all the transactions will be settled within two days.”
He went on to add that they have encountered the technical glitch as they have to rely on NEPSE’s software to settle the transactions.
NEPSE spokesperson Shambhu Panta admitted that the problem surfaced after the trading data forwarded by NEPSE to CDSC got “corrupt.”
Whatever the problem, this has not only exposed the unpreparedness of NEPSE and CDSC when it comes to carryout transactions even in T+3, but also their hollow promise that we can have full-fledged CDS operation in near future.
