As more new investors entered the market, Nepal Stock Exchange (Nepse) posted a turnover of Rs115 billion in the first half of the fiscal year—more than double the figure of the same period a year ago.

The exchange, however, said delay in the implementation of fully automated system, weak monitoring and supervision and poor coordination between Nepse and Securities Board of Nepal (Sebon) are still impeding the secondary market from gaining momentum.

“Instead of coordinating with bodies under its purview, Sebon has been shrugging off its responsibilities,” said Nepse Chairman Ramji Regmi at a programme held to mark the exchange’s 24th anniversary here on Friday. “Had the regulator taken its responsibility, many complications seen in the market would have been simplified.”

Differences between Nepse and Sebon has not only affected share trading, but also impeded implementation of a fully online trading system, expansion of brokers and many regulations from coming into effect.

According to Regmi, Sebon was yet to give its response on seven draft bylaws.

Earlier, Sebon had rejected Nepse’s move to appoint software vendor YCO to upgrade its system for fully automated trading. Last week, YCO received a go-ahead from the court.

In response, Nepse had also disregarded Sebon’s instruction to open two new clearing banks by mid-April 2016.

Nepse General Manager Sitaram Thapaliya said they have started the process of setting up two new clearing banks to ease transaction settlement.

According to Thapaliya, Nepse recently carried out a study on “market maker and market dealer”. “Introduction of market maker and implementation of online trading system is expected to attract real sector companies in the secondary market.”

Stressing on the need for a fully online trading system, Nepal Rastra Bank Governor Chiranjivi Nepal said investments from foreign institutional investors as well as non-resident Nepalis could not be attracted unless the fully automation system is enforced.

He also underscored the need for taking the stock exchange market completely private for its efficient functioning.

Meanwhile, the government collected Rs1.39 billion capital gains tax from stocks transaction in the last fiscal year, according to Nepse. Similarly, Nepse earned Rs651.8 million in commission, while Sebon collected transaction fees of Rs48 million in 2015-16.