NEPSE Approves Securities Trading Operations; Securities Brokers Can Have Their Own TMS

Nepal Stock Exchange (NEPSE) has approved the Securities Trading Operations.

"Though the bylaws were approved by the SEBON, the guidelines was overdue," said Murahari Parajuli, NEPSE's information officer. NEPSE needed time to make the guidelines. Now both the bylaws and the guidelines are approved by the NEPSE. It will go into effect from Sunday.

The most essential feature of the new rules is that brokers can create their own trade management system (TMS). As a result of NEPSE's clearance, securities brokers now have the option of developing their own Securities Trade Management System (TMS).

Starting this Sunday, business owners will be allowed to set up and use their own business management systems. The TMS system, which was launched by NEPSE, is currently used by all the stock brokers.

To run your own TMS, all you need now is an in-principle agreement with NEPSE. According to Parajuli, the broker must provide information within 30 days on how to utilize NEPSE's TMS, whether he develops it himself or buys it from someone else. For offering TMS service, the broker will be entitled to charge the consumer an annual service fee. The regulations provide that a maximum of one hundred rupees can be levied per year.

Similarly, the business members affiliated with the system should pay Rs 10,000 monthly for the technical services provided by NEPSE. The brokers are prohibited to make TMS softwares from YCO Pvt. Ltd. This is the company which is currently operating and maintaining Nepse Online Trading System of NEPSE.