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y Stock market is organized open market for buyingand selling of financial commodities.
y Securities like stock ,debentures, bonds, options and
futures are traded.y Brokers and investors comprises the stock market.
y Only listed companies in stock exchange can trade instock market.
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y Located in Singhdarbar Plaza, Kathmandu ,NEPSEopened trading floor on January 13 1994.
y NEPSE is a non profit organization operating under
security exchange act,1983.y Only organized securities trading market of Nepal.
y Only listed companies can trade under NEPSE .
y NEPSE has the licensed dealer for primary and
secondary market.
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y Security market began with the flotation of shares of Biratnagar Jute Mills and Nepal Bank Ltd. in 1937.
y Company act was introduced in 1964.
y First government bond was issued in 1964.y Security Exchange Center Ltd. was established in 1976.
y Securities exchange was converted into NEPSE in 1993to reform capital markets.
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y It operates on the NEPSE Automated TradingSystem(NATS).
y NATS adopts the principal of an order drivenmarket.
y NEPSE has its own market timings for security trading.
y Settlement is done through T+3 settlementsystem on the basis of paper verses payment.
y NEPSE applies the index circuit breaker system.y It also has price range system that is applicable
only on individual securities.
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y Different factors like peace restoration, boost ininvestors confidence etc. affect the growth of NEPSE.
y Total turnover was Rs. 22.82 billion.y First contributor was commercial banks, second
was Hydropower.
y Total capital market capitalization was Rs. 366.24billion .
y NEPSE index increased by 40.9%(lowest 677.9 onjuly18 ,2007to highest 1064.09 on dec 17,2008)
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y First adopted on 24 august 2007 at the cost of $300,000.
y ATS helped to eliminate all possible human errors.
y Different features are available through this system, they
are as:
y Better client management.
y Oder entry system for order placement.
y Price of the securities.
y
Execute at facilities.y Conditions for order executions.
y MarketDepth provision.
y Settlement feature.
y Blank transfer mechanism.
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y Less liquidity of the stock market or shares.
y Though NEPSE index has increased ,trading of shareshas decreased.
y No investment has yet flowed to share market becauseof the new banking policy.
y Only primary market is f lourishing.
y Government is silent towards the secondary market.
y No trading outside the Kathmandu valley.
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y NEPSE is planning to reach to the investors outside theKathmandu valley through brokers.
y It is also planning to introduce the online transaction
for the outside investors.y It is seeking to extend the timeframe of transactions.