NEPSE implements first phase of Bank Integration, allowing investors to purchase securities through direct online payments

Nepal Stock Exchange Limited (NEPSE) has introduced Bank Integration in the Online Trading System. Using the online payment service of NEPSE, from Sunday the investors can directly make payments for the purchase of securities.

In the first phase, the investors will not have to go to their brokers’ office to make payment for the securities purchased. They can choose to make the payment using the online system. However, the investors have to wait for some time for complete integration which will allow the investors to receive payments for sold securities directly to the bank account.

After the implementation and review of the first phase, the second phase will be implemented accordingly. In the second phase, BFIs under Nepal Clearing House will be able to use online payment system to process the complete transaction. This will lift geographical boundaries and allow share transaction from any part of the world.

For the first phase, investors will be allowed to transfer an amount of Rs.1 Lakh per transaction from one account to their respective brokers’ account on the event of purchase of securities. The investor will have to use multiple transactions to transfer amount more than Rs.1 Lakh. The transaction limit for a single bank account is set at Rs.10 Lakhs per month.

Currently 48 BFIs having tie-up with Connect IPS will be able to use this facility. Further, 7 institutions are in the process of implementing Connect IPS after which 55 BFIs will be proving the facility. In the second phase, more than seven dozen BFIs will be integrated with Connect IPS after which the online payment facility can be used to buy and sell securities.

NHCL will be charging nominal fee for each transaction. Transactions of Rs.50 Thousand or more will be charged Rs.15 per transaction. Similarly, if the transaction amount is between Rs.5 Thousand and Rs.50 Thousand, the charge per transaction will be Rs.10. Transactions between Rs.500 and Rs.5 Thousand will attract a charge of Rs.5 per transaction and below Rs.500 will attract charge of Rs.2 per transaction.

For effective implementation of the facility and to review the issues in the system, NEPSE has requested all BFIs under NHCL to use the system.