KATHMANDU, Sept 22: The Securities Board of Nepal has directed the Nepal Stock Exchange to investigate the technical problem that forced it to suspend regular trading and submit a report recommending corrective measures.
A technical fault occurred on September 20 at a data centre hosting the servers of 72 of the 92 companies licensed to operate as securities brokers. As the problem could not be resolved immediately, NEPSE suspended regular trading on September 21 to prevent possible damage to its trading system.
SEBON said it had taken the incident seriously. Board spokesperson Niranjaya Ghimire said NEPSE had been instructed to investigate the problem and submit a report by September 28, outlining measures to prevent similar disruptions.
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The board has also deployed a five-member inspection team led by a deputy executive director to examine the technical aspects of the incident and determine why trading had to be suspended.
The team will study the data centre fault, its impact and the potential risks it posed to the trading system.
Earlier, the Stock Brokers Association of Nepal had requested NEPSE to suspend the regular trading session until the data centre problem was resolved.
NEPSE said it halted trading under Rule 21(1) of the Securities Listing and Trading Regulations, 2018.
SEBON said it would use the inspection team’s findings and recommendations to introduce reforms aimed at making Nepal’s securities market safer and more transparent.
Ghimire said the board would take steps to identify and reduce technical risks while protecting the reliability and security of the market’s trading system.
