NEPSE BOD Meeting Scheduled For Tomorrow Morning; Agenda To Discuss Final Official Approval for Seven New Brokers and NEPSE-30 Index Operation
Tue, Jul 4, 2023 1:58 PM on Latest, Stock Market, National,
A meeting of the Board of Directors (BOD) of Nepal Stock Exchange (NEPSE) has been scheduled for Wednesday morning to discuss matters including the final approval for the seven broker companies and operation of NEPSE-30 index.
Talking to Sharesansar over the phone Company Secretary and Information Officer at NEPSE Murahari Parajuli stated, "A meeting of the Board of Directors of NEPSE has been scheduled for tomorrow morning. Tomorrow's BOD meeting has agendas including discussion to provide final approval to the seven broker companies as well as the discussion on operation date of NEPSE-30 index."
Parajuli shared that with the exception of any unprecedented circumstance, potentially the final approval of NEPSE membership will be provided to the seven companies.
"If the BOD meeting provides 'go ahead' signal to the new brokers all due process can be conducted later on. The seven brokers can then submit authorized representative letter from SEBON in line with Securities Businessperson (Stock Broker, Securities Dealer and Market Maker) Regulations, 2064 (2008), following which NEPSE membership certificates can be made available to the companies," according to Parajuli.
In the same manner, in the second phase at NEPSE ten new brokerage houses have received letter of intent (LOI)/preliminary license from the Nepal Stock Exchange (NEPSE).
READ MORE: 10 New Brokerage Houses Receive LOI From NEPSE in Second Phase
In the first phase seven broker licenses under the limited brokerage services were approved. The seven new companies includes Bhole Ganesh Securities Limited, Capital Max Securities Limited, Himalayan Brokerage Company Limited, Sun Securities Private Limited, Miyo Securities Private Limited, Sharepro Securities Private Limited and Property Wizard Limited.
As of now, the Securities Board of Nepal (SEBON) has approved licenses for 18 companies in two different phases after fulfulling infrastructural pre-requisites.
Following the approval, Mega Stock Markets Limited can extend its services as a full operating securities broker. Additionally, Nabil Securities Limited, the lone applicant for a broker company with a dealer’s license, had its application approved.
The Nepal Stock Exchange (NEPSE) is currently engaged in inspecting the infrastructure of new brokers in the market. These brokers are required to prepare their infrastructure in accordance with the provisions outlined in the Securities Transactions (Third Amendment) Regulations, 2079. Compliance with these regulations includes the appointment of IT manpower as stipulated. Once the infrastructure is prepared, NEPSE will provide an API to establish a connection for testing purposes. API is the acronym for Application Programming Interface, which is a software intermediary that allows communication between NEPSE's storage of data and the entity that wants the data.
It should be noted that the API provided for one trading member cannot be used by another member. Following a successful API test without any issues detected, the system will be granted permission to operate regularly. Prior to that, the necessary groundwork must be completed, including the corn business. The new brokers will use NEPSE's TMS (Trading Management System) to conduct their operations.
Moreover, after obtaining permission from NEPSE, brokers will be required to obtain membership from CDS and Clearing Limited (Central Depository System). Once this process is completed, brokers can commence their business activities.
Presently, brokers are actively involved in staff management, and infrastructure preparation, as they work towards becoming operational in the market.
The remaining nine companies' licenses were approved granting them to work as limited securities broker which included Elite Stock House Limited, Infinity Securities Limited, Index Securities Limited, Shubkamana Securities Private Limited, Hatemalo Financial Services Private Limited, Money World Share Exchange Private Limited, Machhapuchhre Securities Limited, Kalash Stock Market Private Limited and KBL Securities Limited (which has not yet sought NEPSE membership).
Earlier, NEPSE had finalized all preparations for the launch of the 'NEPSE 30 Index'. The management of NEPSE had confirmed that all necessary preparations had been completed to commence the operation of the NEPSE 30 index.
According to NEPSE spokesperson Murahari Parajuli, the only remaining task is for the board of directors was to determine the operational date for the index.
