A system model of online trading system for Nepal Stock Exchange

Nepal Stock Exchange is the only Stock Exchange in Nepal. It has already introduced ATS. Central Depository System has also been implemented in the investment of Nepal stock Exchange. With physical share certificates trading, it takes at least 15 days to transfer securities from the seller to the buyer and about a week for the seller to receive funds. Even with the introduction of Central Depository System, the settlement cycle of trades done in NEPSE is T+3. T+3 means that when a security is purchased, payment and the securities certificate must change hands no later than three business days after the trade is executed. In the current scenario, the market is changing continuously but investors are unable to sell or buy their securities at their preferred time. So, there is a need of online trading system that helps investors to buy or sell their securities and settle their trade in less time. At the moment, securities market is broker dependent so this research proposes a system model to increase the dependency of the investors directly in the secondary market. For this purpose, this work investigates the current IT systems implemented in securities market and proposes a model of online trading system for Nepal Stock Exchange. This research has used qualitative and quantitative methodologies to collect the data from the stakeholders.