Securities Brokers Can Have Their Own TMS; What Are The Set Of Rules Brokers Have To Follow?

For broker companies that seek to maintain new TMS, the Nepal Stock Exchange (NEPSE) has given regulations of the procedure.

As a result of NEPSE's clearance, securities brokers now have the option of developing their own Securities Trade Management System (TMS).

However, the broker company must first apply for the new TMS, as per the protocol. The application states that NEPSE will permit to keep a new TMS if it thinks it is suitable.

The broker must provide information within 30 days on how to utilize NEPSE's TMS, whether they develops it by their own 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.

The broker company will need two technical employees in addition to the new TMS. For the connection to the NEPSE system, the broker company must pay Rs 35,000 each month. The amount has to be paid in a lump sum on a semi-annual basis.