Opinions of Investors on Nepal Stock Exchange Limited (NEPSE) Online Trading System

Abstract

Nepal Stock Exchange Limited (NEPSE) is only a secondary market in Nepal. After almost three decades of its establishment, the NEPSE trading system turned fully automated on January 17, 2021. The new system is named NEPSE Online Trading System (NOTS), which was launched on November 6, 2018. After the breakout of the COVID-19, the NOTS users using NEPSE online Trade Management System (TMS) and Uniform Resource Locator (URL) increased due to the nation-wide lockdown as well as the compulsion from the governing body. Hence, the paper attempts to get opinions from the NOTS users about its features and performance. The paper has taken 300 NOTS users as samples for the survey purpose. The online survey was conducted for the study. A 5–points Likert scale-based questionnaire was forwarded to the potential online traders (investors) through an online platform such as messenger and email. The study has followed descriptive statistics and a one-sample t-test to interpret the collected data from the NOTS users. The study found that there is an issue of the market data display in the NOTS platform, which needs to be addressed as soon as possible. At the same time, the respondents stated that the best parts of NOTS were that it has helped them to specify and customize the securities, price, and volume that one would like to trade on a real-time basis.

Prospects of Trade Management System (TMS) in Nepalese Stock Market: Evidence from Structural Equation Modelling

“…Result indicates that brokers providing the awareness among the clients about trade management platform (TMS) properly. Similarly, other online traders who have experience of online trading of a year or more stated that they took the service of NOTS due to the rise in cases from the COVID-19 pandemic (Vaidya, 2021). But, improvements in informational and operational efficiency are expected to inspire greater confidence in domestic markets (El-Wassal, 2013).…”

“…Web-based stock trading has become a very popular method, and internet stock brokers with specialized websites offer convenient trades trading; however, there is much he or she should learn, and there are precautions to be taken (Chauhan et al, 2022). To address the historical context within NEPSE, this paper investigates issues in the online trading system of NEPSE among NOTS users, considering the nearly two years since the implementation of NOTS and the introduction of the NEPSE Trade Management System (TMS) Uniform Resource Locator (URL) gateway following the onset of the COVID-19 pandemic (Vaidya, 2021).…”

“…Similarly, Yomari Company (YCO) -the software company that built the NOTS for NEPSE and providing services. But, many times it was reported that the system couldn't handle the load and addressing that NEPSE stated that the system currently can handle more than 20,000 order matches per second (Vaidya, 2021). Still several questions were unanswered in the context of trade management system which needs to be addressed.…”

Interplay of Investor Cognition, Financial Literacy, and Neuroplasticity in Investment Decision Making: A Study of Nepalese Investors

“…As a result, several nations have developed and implemented national financial literacy projects, often concentrating on younger generations. Contrary, there has been a significant increase in investor engagement in the Nepalese stock market (Vaidya, 2021), as seen by the expansion of Demat accounts and increased trade volume on the NEPSE. However, rather of forming rational investment decisions, many investors frequently rely on mental shortcuts and easily accessible information, often from informal sources like friends and family.…”