NEPSE joins NCHL for Online Payment System; investors to make and receive payment for their share transactions all via online gateway

Nepal Stock Exchange Ltd. (NEPSE) has fully integrated e-payments systems of Nepal Clearing House Ltd. (NCHL), namely NCHL-IPS and connectIPS e-Payment systems, within its Trade Management System (TMS) for online shares trading. The investors will now be able to transfer fund to the brokers for collateral or payment against buy trade. Similarly, this will enable the brokers to disburse payments against the sales proceeds or collateral refund.

Investors need to have TMS login (provided by its respective broker) and connectIPS user id with at least one linked bank account. The investor can then load fund for collateral in its TMS account through connectIPS payment option available in the TMS. Similarly, the payment to the broker after the execution of the buy order can also be paid directly through the same channel available in the TMS. On selecting the connectIPS, as the payment options, the investor will be redirected to the connectIPS login page, wherein after the submission of the required credentials, it can load fund for collateral or pay to the broker from its desired linked bank account.

Similarly, the investor could request for refund or withdrawal of collateral from TMS, which after the approval by the broker will be transferred to the designated bank account of the investor through connectIPS or NCHL-IPS system. The payment to be made by the broker against the sales proceeds can also be disbursed by the broker from TMS through connectIPS or NCHL-IPS system directly into the bank accounts of the investors available with the broker.

There are currently over 50 BFIs within connectIPS e-Payment System and 76 BFIs within NCHL-IPS System. connectIPS e-Payment is a real-time retail payment system with transaction limit of up to 10 lakhs per bank. And NCHL-IPS is an automated clearing house system to support bulk and other payments with current transaction limit of up to 20 crore.

NEPSE has integrated the consolidated interfaces of both the systems for automating its payments leg of in the online trading platform. With the rollout of e-payment within NEPSE system, NCHL expects to further facilitate the capital market, which has been processing payment transactions for dividend payments, refunds, DMAT & Mero Share fee payment and broker payment prior to this trade payments.

NEPSE is primarily promoted by the Government of Nepal and is the only stock exchange in Nepal operating under the Securities Exchange Act, 1983 with an objective to provide marketability and liquidity for various types of security instruments.

NCHL is promoted by Nepal Rastra Bank and majority of the BFIs to establish multiple national payment systems in Nepal and has been operating electronic cheque clearing (NCHL-ECC), interbank payment system (NCHL-IPS) and connectIPS e-Payment systems.