Nepal Clearing House introduces manual for online payment settlement of trade in stock market

Nepal Clearing House (NCHL) has introduced a detailed manual that states the step by step procedure on how the payment settlement will be done in NEPSE. NEPSE, not so long ago, introduced online trading which automatized the placement of buy and sell order by investors themselves. However, the payment wasn't just as smooth. So recently NCHL worked with the brokers and started bank integration.

One of the features of NOTS is the banking integration using Nepal Clearing House Limited (NCHL). When the trade is done between clients, the bank account of brokers and clients can be in different banks, however the money needs to flow for the trade to complete. This is where integration using NCHL is needed.

If the broker places the trade on the behalf of a client, the client first needs to load desired amount of collateral in brokers account. This process is “First phase of NCHL Banking Integration (Load Fund)”.

Then, collateral transfer between Counter Broker happens. Once the settlement is done and the money is received by the second party, then Seller client can withdraw amount which is initiated by client and approved and delivered by Broker. This is termed as Second Phase of NCHL Banking Integration (Fund Withdrawal).

You can access the manual here.