Sebon to launch semi-online trading system soonThe Securities Board of Nepal (Sebon) has planned to implement a semi-online trading system to allow share investors to do their trading over the internet until a fully automated system is operational.
The Securities Board of Nepal (Sebon) has planned to implement a semi-online trading system to allow share investors to do their trading over the internet until a fully automated system is operational.
The online system is expected to make life easier for stockbrokers and their customers. Share traders will be able to post their buying and selling orders over the internet without having to make a trip to their stockbroker’s office.
Many stockbrokers have been handling orders received over the telephone, but difficulties in verifying their authenticity make them a risky proposition. Sebon Spokesperson Niraj Giri said the semi-online system would help both investors and stockbrokers by removing hassles.
According to Sebon officials, stockbrokers using the semi-online system will provide the username and password of the trading system to their clients. Interested investors can log in and post their purchase or sale orders for shares of companies listed on the Nepal Stock Exchange (Nepse).
Investors have to provide their bank details to their stockbroker. According to Sebon, investors need to have a bank account and should have fulfilled their ‘know your customer’ requirement.
“Banks using the Finnacle system support smooth operation of the semi-online system,” said the Sebon source. He added that users of traditional banking software could also provide the service. Sebon said the software currently being used by stockbrokers could implement the semi-online trading system.
Nepse has been working with software vendor YCO to prepare new software to implement a fully automated system. The firm was supposed to start work last year, but Sebon had disqualified it for not meeting its criteria. YCO returned two months ago following a court ruling.