Stock Brokers Association of Nepal submits 11-point suggestion to NEPSE

December 22, 2024, 11:47:19 AM |

KATHMANDU: The Stock Brokers Association of Nepal (SBAN) has provided an 11-point recommendation to the Nepal Stock Exchange (NEPSE). The newly elected executive committee of the brokers presented various proposals aimed at improving stock trading and addressing existing issues.

One of the key suggestions is to introduce a ledger system within the TMS platform to address the close-out problems faced by clients during share transactions.

The association also proposed enhancements to NEPSE’s current website, including the ability to download all quarterly and monthly financial reports of listed companies in Excel and PDF formats. Additionally, they recommended providing access to detailed information about the board members of listed companies and allowing users to view all corporate actions of listed companies from the date of their listing.

SBAN suggested integrating the details of directors of listed companies into the Central KYC of the Central Depository System (CDSC) and enabling this information to appear seamlessly when clients open accounts. They also emphasized the need to introduce a post-closing market system.

Other recommendations include increasing the broker limit from 25 times to 50 times. They urged NEPSE to remove the provision that shows broker members as suspended on the website when their transaction limit is exhausted. Furthermore, they called for the abolition of the requirement to provide physical documents immediately after uploading all necessary papers through the NATs system to increase the broker limit.

The association highlighted the need to establish the necessary systems for auction markets and facilitate off-market transactions. They also suggested implementing an online system for OTC transactions and enabling all paperwork and transaction approvals for promoter share trading to be conducted online.

To enhance market operations, SBAN recommended that NEPSE maintain a clearing guarantee fund of at least NPR 100 million, with interest rates comparable to fixed deposits held by banks and financial institutions.

The association’s suggestions aim to modernize and streamline stock trading systems, improve transparency, and address operational inefficiencies in Nepal’s stock market.

Fiscal Nepal |

Sunday December 22, 2024, 11:47:19 AM |