Online share trading to go live next week
Nepal Stock Exchange (Nepse) Ltd is all set to launch the fully-automated trading system from next week.
The new modernized stock trading -- Nepse Online Trading System (NOTS) -- will replace the existing manual trading system known as computerized trading system (CTS).
Following the launch of the online trading system, investors are no more required to visit brokerage office to place their order as they have been doing now.
The stock exchange company is bringing into operation online trading system after allowing investors to participate in mock trading in the new system for about one and half months. Nepse officials believe it allowed investors to familiarize themselves with the new system.
“The new system is expected to go live from next week. However, the exact day is yet to be fixed,” Chandra Singh Saud, general manager of Nepse, told Republica.
Though the process to introduce the much-hyped online trading system was initiated long ago, the process was stalled amid controversy over the selection of vendor to provide such service. A case was also filed against the procurement process at the court.
Previously, Nepse officials made several announcements to launch the online trading system by replacing the existing manual trading system.
Nepse had signed agreement with YCO Pvt Ltd, an information technology firm, for supply, delivery, installation and commissioning of the fully-automated online trading system in February last year after a court ruling came in favor of the vendor. The trading system developed by YCO Pvt Ltd will allow investors to place their orders online, while everything -- payment, clearing and settlement – can be carried out electronically.
Nepse officials have said that they have decided to enforce the new system after user acceptance test (UAT) of the new system conducted by a third party gave them a positive nod.
“The vendor carrying out the UAT has given the nod to the new system. Also, there were positive responses from investors during the mock trading period,” said Murahari Parajuli, the spokesperson for Nepse.
The new system was built with an estimated cost of Rs 220 million.
Parajuli said that there will be an option to do manual trading for those investors who cannot use online trading system. He also said that they are in the process to bring the online payment system on board the NOTS so the entire trading process is carried out electronically.
Source: My Republica