Nepal Stock Exchange to extend trading outside Valley

Kathmandu January 14- Stock traders will be able to conduct business from most cities outside the Kathmandu Valley in the next two months, the Nepal Stock Exchange (NEPSE) said Wednesday.

NEPSE will make available remote work stations to stockbrokers enabling them to trade stocks electronically. Earlier, the country’s sole stock exchange had opened 11 work stations outside the valley, but a number of them were closed as there wasn’t adequate business to justify their running costs.  

Currently, NEPSE provides services from eight work stations—three in Pokhara, two in Biratnagar and one each in Dharan, Birgunj and Narayanghat. However, they have not been able to attract many investors due to lack of an automation system.

Speaking at a programme organised to mark NEPSE’s 23rd anniversary, Nepse General Manager Sita Ram Thapaliya said they had been developing the necessary software to increase access for brokerage companies. “We have targeted providing unlimited login facilities by enhancing the application server, matching engine and database server,” he said.

A few months ago, NEPSE had increased login services to 120 units, calculated on the basis of two units for each brokerage company. Thapaliya said they were now in a position to provide 250 login facilities. According to him, NEPSE has also started doing home work to increase the number of remote work stations by adding trading terminals.

NEPSE said it would also be increasing the access of individual investors to the financial information of listed companies. Thapaliya said they would be instructing listed companies to publish their information on the Nepse portal. “The companies have to post their current profile, financial report, board of director profile and information on corporate activities by the last week of January. This will help potential investors to obtain details about the companies before deciding whether to buy their shares or not.

NEPSE has started disclosing market depth in a bid to help investors. This option allows investors to get information on the top five buying and selling orders.