Nepal Stock Exchange (NEPSE) has issued a press release addressing the queries of those who trade stocks through the NEPSE Online Trading System (NOTS) and those who are interested to trade through it.
1) As of now, 40,000 investors have taken username and password from stockbrokers to trade online. It has been observed that stockbrokers should now upgrade their hardware and software data centers and increase their IT human resources as specified by NEPSE.
2) NEPSE has found on inspection that some stockbrokers are lagging in their services and management. NEPSE has directed them to rectify the issues and better serve investors.
3) It is the stockbrokers' responsibility to help investors trade online. Thus, a directive to establish a help desk has been forwarded. NEPSE has also forwarded them a directory on how to teach investors to trade online before brokers hand them their username and password.
4) Since the management of the Trade Management System is the primary responsibility of brokers, NEPSE has requested investors to contact NEPSE support only if the problem is unsolvable by the respective broker. Investors need to specify their name, address, three-generational details, citizenship ID no., bank account details, DP account, and proof of their account at the respective broker.
5) Investors cannot trade stocks if their DP account is linked to multiple broker accounts.
6) Investors have a total of 3 limits for risk management: Limit of the total transaction, limit on total securities traded and limit on total capital traded. It is the investor's duty to know of these limits from their broker.
7) It has been seen that some investors can't place trades even after investors have deposited the required collateral since brokers don't reveal the limit. NEPSE requests investors to contact their stockbrokers if any such problem arises.
8) Brokers can demand 25% of the transaction amount as collateral. NEPSE requests stakeholders to operate accordingly.
9) If an investor wants to change their broker account to a different broker, it can be done only after they clear their credit or debit with their previous broker. To do this, an email should be sent from the broker (and not by themselves) specifying the investor's broker and broker account details.
10) Online payment can be done between brokers and investors, with Rs. 10 lakh limit per transaction, and Rs. 1 crore limit per day (via Connect IPS) and Rs. 10 crores limit per day (via NCHL IPS).
11) Investors should only offer to sell the stocks they actually have, by looking at their portfolio in TMS.
12) BOID will be updated on the next trading day after investors apply to change their broker.
13) NEPSE is researching to develop other indices other than the NEPSE index so investors can have more instruments to rely on while placing trades.