Nepse extends share trading hours to fourNepal Stock Exchange (Nepse) has extended the trading hours from three to four hours, effective from Sunday.
Nepal Stock Exchange (Nepse) has extended the trading hours from three to four hours, effective from Sunday.
The secondary market will now remain from 11:00am to 3:00pm.
Nepse General Manager Sitaram Thapaliya said the trading hours were increased to address demands for the same from investors amid market growth intensifying transaction clearing pressures. The Investors had been complaining they didn’t have enough time to forward their buying and selling decisions before the market is closed.
The brokers had also been complaining about the pressure they were facing to register transaction data on the system because of the limited trading hours amid surged transaction volume lately.
A swelling number of investors after the implementation of the Demat (electronic clearing system) in share trading have been cited as the reason for the increase in pressure and the need to implement reforms.
The Securities Board of Nepal (Sebon) has been time and again forwarding its directions to the bourse to prioritise implementation of a transaction system which minimises settlement pressure. And, it has welcomed the latest measure taken by the Nepse.
“Keeping in mind the increasing volume of transaction and the necessity to improve services for the investors, the Sebon has welcomed the decision to add one more hour to the trading time,” said Sebon in a statement.
However, the board also raised some issues which it says are yet to be addressed—the need for adding clearing banks, improving transaction system, addressing clearing issues of pay in and pay out and implementing reforms like settlement guarantee fund and auction market.
The broker community has also taken the Nepse decision positively, stating other functions like CDS (Central Depository System) and clearing should operate faster to handle the increased number of transactions.
“It is a good initiative by Nepse,” said Priya Raj Regmi, president of the Stock Broker’s Association of Nepal. “Now the focus should be on enhancing the depository and clearing and settlement services. Moreover, the operational pressure faced by brokers will also ease a bit.”
Currently, there are 50 clearing members and 56 licensed depository participants in the CDS. The number of shares in Demat format has reached 922.527 million.
Panel to probe illicit funds
KATHMANDU: The Securities Board of Nepal (Sebon) has set up a committee to probe the transaction modality between brokers and investors amid suspicion of inflow of illicit money into the market.
“The market has swelled significantly in recent days along with an increase in the number of investors, listed organisations, securities traders and securities transaction volume. The widening scope of the market has raised suspicion of heavy inflow of illicit money,” said Sebon.
“Keeping in mind the increasing number of transaction and volume, a monitoring and investigation committee led by Executive Director Paristha Nath Poudyal has been formed,” Sebon said.
The committee comprises the heads of the law, and monitoring and research departments. Sebon also plans to invite officials from the Min-istry of Finance, Department of Money Laundering Investigation, Nepal Police, Central Investigation Bureau and other experts to make the investigation more effective. The committee has been asked to submit its report in a month. “We have set up the committee to monitor the market movement and high-volume transactions,” said Sebon Spokesperson Niraj Giri.