Nepal Stock Exchange (Nepse) has expedited preparation to expand share trading services to other major cities outside Kathmandu valley within coming two months.
Addressing a program organized on Wednesday to commemorate Nepse's 23rd anniversary, the stock exchange company's General Manager Sitaram Thapaliya said that they were already in a position to provide 250 additional log-in windows to the brokers for expanding their services.Currently, Nepse has provided only two log-in windows to each 50 brokerage firms.
Thapaliya also said that the expansion of the services to other major cities will end the compulsion of investors to come to the capital city to sell or buy stocks. While Nepse is already providing trading services from major cities like Biratnagar, Dharan, Pokhara, Narayanghat and Dhangadi, it plans to expand services to other cities including Itahari and Nepalgunj. However, total trading turnover and number of transactions outside Kathmandu is still around 5 percent of the total turnover and transaction in Nepse.
The average daily turnover of Nepse stands at Rs 400 million.
Full-fledged implementation of dematerialized form of trading is expected to raise turnover outside Kathmandu as the new system will end the compulsion of sending physical certificates to Kathmandu for ownership transfer and other processes like signature verification of the share owner. CDS and Clearing Ltd has already said that many Depository Participants, which are banks, can also provide services from their branch offices in the districts.
Full-fledged dematerialized shares trading is coming into implementation from January 17.
According to Thapaliya, Nepse has also started homework to increase the number of remote work station by adding trading terminals to provide trading service to other parts of the country in line with the federal structure. He also said that the stock exchange company has arranged a system whereby every listed company should post their corporate disclosure on Nepse website directly so that all investors can get information at once. Such system will also help to address grievances of investors about the lack of information of the listed companies, he added.
Meanwhile, Minister for Finance Bishnu Prasad Paudel has said that the government was preparing to open the stock market for non-resident Nepalis. "The secondary market is largely dominated by bank and financial institutions. They comprise 80 percent of the total listed companies. There is an urgent need to bring other sector for the diversification of stock market," he added. He also said that stock market should be capable of financing some mega projects.
Also speaking at the program, Chairman of Securities Board of Nepal, Rewat Bahadur Karki, said that full-fledged implementation of dematerialized form of securities trading will help to develop the stock market. "Nepse still lags far behind in South Asia in terms of modernization of the secondary market. The automated trading system should be introduced as soon as possible to modernize the market," he added.
Aatma Ram Ghimire of Nepal Investors Forum said that regulatory bodies for every trading group in the stock market is a must to protect interest of public shareholders. "We have only the regulator for BFIs, insurance companies and Nepal Telecom. Hydropower and other companies do not have regulator," he said, adding that lack of regulatory body does not bode well for the vibrant stock market.
source: republica,14 jan 2016
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Addressing a program organized on Wednesday to commemorate Nepse's 23rd anniversary, the stock exchange company's General Manager Sitaram Thapaliya said that they were already in a position to provide 250 additional log-in windows to the brokers for expanding their services.Currently, Nepse has provided only two log-in windows to each 50 brokerage firms.
Thapaliya also said that the expansion of the services to other major cities will end the compulsion of investors to come to the capital city to sell or buy stocks. While Nepse is already providing trading services from major cities like Biratnagar, Dharan, Pokhara, Narayanghat and Dhangadi, it plans to expand services to other cities including Itahari and Nepalgunj. However, total trading turnover and number of transactions outside Kathmandu is still around 5 percent of the total turnover and transaction in Nepse.
The average daily turnover of Nepse stands at Rs 400 million.
Full-fledged implementation of dematerialized form of trading is expected to raise turnover outside Kathmandu as the new system will end the compulsion of sending physical certificates to Kathmandu for ownership transfer and other processes like signature verification of the share owner. CDS and Clearing Ltd has already said that many Depository Participants, which are banks, can also provide services from their branch offices in the districts.
Full-fledged dematerialized shares trading is coming into implementation from January 17.
According to Thapaliya, Nepse has also started homework to increase the number of remote work station by adding trading terminals to provide trading service to other parts of the country in line with the federal structure. He also said that the stock exchange company has arranged a system whereby every listed company should post their corporate disclosure on Nepse website directly so that all investors can get information at once. Such system will also help to address grievances of investors about the lack of information of the listed companies, he added.
Meanwhile, Minister for Finance Bishnu Prasad Paudel has said that the government was preparing to open the stock market for non-resident Nepalis. "The secondary market is largely dominated by bank and financial institutions. They comprise 80 percent of the total listed companies. There is an urgent need to bring other sector for the diversification of stock market," he added. He also said that stock market should be capable of financing some mega projects.
Also speaking at the program, Chairman of Securities Board of Nepal, Rewat Bahadur Karki, said that full-fledged implementation of dematerialized form of securities trading will help to develop the stock market. "Nepse still lags far behind in South Asia in terms of modernization of the secondary market. The automated trading system should be introduced as soon as possible to modernize the market," he added.
Aatma Ram Ghimire of Nepal Investors Forum said that regulatory bodies for every trading group in the stock market is a must to protect interest of public shareholders. "We have only the regulator for BFIs, insurance companies and Nepal Telecom. Hydropower and other companies do not have regulator," he said, adding that lack of regulatory body does not bode well for the vibrant stock market.
source: republica,14 jan 2016
LINK
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