The planned upgradation of trading software at the Nepal Stock Exchange (Nepse) has been delayed after serious differences emerged between the bourse and the Securities Board of Nepal (Sebon).

Sebon has accused Nepse of not following its instructions while the stock market said its directives about ‘internationally tested software’ came too late.

Stakeholders and investors have been asking Nepse to upgrade the existing software that was installed nearly a decade ago after it started experiencing multiple glitches. The ATS system with a lifespan of five years was brought to the securities market in 2007. 

“The system should have been replaced in 2012, but Nepse has not moved to address the concerns of investors,” said Niraj Giri, spokesperson for Sebon. “We have already directed Nepse to import internationally tested software that can protect investors from false information.” Giri added that an internationally verified and transparent system would increase investor confidence and help the securities market to attract foreign investments. 

Nepse officials blamed Sebon’s “delayed correspondence” for a new system not being implemented. The stock market entered into a purchase contract agreement with software vendor YCO in February 2016.

“After we had signed the deal, Sebon sent us a letter asking us to implement ‘internationally trusted software’,” said Sitaram Thapaliya, general manager of Nepse. “We have complied with all the directives.”

Sebon officials called the accusations baseless. “Sebon did not issue a letter asking it to stop the procurement process,” said Giri. “We have directed Nepse to buy an internationally tested and transparent system. We have not issued any orders to hinder the implementation of the agreement.

According to Thapaliya, no trading system can work optimally all the time, and errors occur now and then. “We are committed to minimising errors,” he said.

Meanwhile, the District Court has ruled on a case filed by YCO against Sebon and Nepse demanding the implementation of the agreement by saying that Sebon was right to issue the directive.

When asked when a new system would be purchased and implemented, Thapaliya said that Nepse would follow the court’s verdict, but the case might go to the Appellate Court and even to the Supreme Court. According to Thapaliya, Nepse’s next move will be based on ‘orders’.

“Sebon and Nepse are guided by the vested interest of some of their officials,” a representative of the broker community said. “Sebon had no reason to put forward its demand and stop the software procurement process.”

“The growing market needs to be supported by updated trading software which can handle data and facts properly,” said Rajan Tiwari, a small portfolio investor. “Investors like us rely on such information to base our crucial decisions.” According to Tiwari, the current system is not able to deliver information in real time. “It is high time the system was replaced,” said Tiwari.