NEPSE Confirms Membership of Seven New Brokers For Extending Services After Specified Criteria Fulfillment
Thu, Jul 6, 2023 10:33 AM on Featured,
The Nepal Stock Exchange (NEPSE) on Wednesday evening confirmed the membership of seven new brokerage companies for extension of their services.
Talking to Sharesansar over the phone, Company Secretary and Information Officer Murahari Parajuli authenticated that those broker companies which have fulfilled all specified criteria have received approval of their membership.
"A meeting of the Board of Directors of NEPSE decided to finalize NEPSE membership of the companies which have fulfilled all specified criteria," Parajuli said.
Earlier, NEPSE had provided letter of intent (LOI)/preliminary license to seven companies in the first phase. Their membership has now been approved by the stock exchange.
In the first phase seven broker licenses under the limited brokerage services were approved by SEBON and subsequently their membership at NEPSE has been approved. The seven new companies includes Bhole Ganesh Securities Limited, Capital Max Securities Limited, Himalayan Brokerage Company Limited, Sun Securities Private Limited, Miyo Securities Private Limited, Sharepro Securities Private Limited and Property Wizard Limited.
In the second phase, SEBON verified the license of 11 additional companies received licences after fulfulling infrastructural pre-requisite.
Following the approval, Mega Stock Markets Limited can extend its services as a full operating securities broker. Additionally, Nabil Securities Limited, the lone applicant for a broker company with a dealer’s license, had its application approved.
The remaining nine companies' licenses were approved granting them to work as limited securities broker which included Elite Stock House Limited, Infinity Securities Limited, Index Securities Limited, Shubkamana Securities Private Limited, Hatemalo Financial Services Private Limited, Money World Share Exchange Private Limited, Machhapuchhre Securities Limited, Kalash Stock Market Private Limited and KBL Securities Limited.
In the same manner, 10 among the 11 companies, which received approval from SEBON in the second phase, also have attained letter of intent (LOI)/preliminary license from the NEPSE. KBL Securities has not yet applied for NEPSE membership.
The Nepal Stock Exchange (NEPSE) is currently engaged in inspecting the infrastructure of new brokers in the market. These brokers are required to prepare their infrastructure in accordance with the provisions outlined in the Securities Transactions (Third Amendment) Regulations, 2079. Compliance with these regulations includes the appointment of IT manpower as stipulated. Once the infrastructure is prepared, NEPSE will provide an API to establish a connection for testing purposes. API is the acronym for Application Programming Interface, which is a software intermediary that allows communication between NEPSE's storage of data and the entity that wants the data.
It should be noted that the API provided for one trading member cannot be used by another member. Following a successful API test without any issues detected, the system will be granted permission to operate regularly. Prior to that, the necessary groundwork must be completed, including the corn business. The new brokers will use NEPSE's TMS (Trading Management System) to conduct their operations.
Moreover, after obtaining permission from NEPSE, brokers will be required to obtain membership from CDS and Clearing Limited (Central Depository System). Once this process is completed, brokers can commence their business activities.
Presently, brokers are actively involved in staff management, and infrastructure preparation, as they work towards becoming operational in the market.
In the same manner, Parajuli stated that the BOD meeting has also decided to conduct an internal examination of the NEPSE-30 index before deciding the date of operation.
