NEPSE Technology Under Private Company Control? Investor Ajay Shrestha Calls for Free API Access

Independent investor Ajay Shrestha has raised concerns over the management and accessibility of Nepal Stock Exchange (NEPSE)'s trading technology, calling for greater transparency, open competition, and free API access to support the development of Nepal's capital market infrastructure.

Speaking at a meeting of the Parliamentary Finance Committee on Wednesday, Shrestha questioned the role of private companies in operating technology associated with NEPSE's Nepal Online Trading System (NOTS). He argued that Nepal's technology companies, software developers, and skilled professionals should have greater opportunities to contribute to the country's stock market infrastructure.

His remarks have renewed discussions about access to stock market data, the ownership structure of Trading Management System (TMS) providers, and the potential for conflicts of interest in Nepal's securities market.

Investor Calls for Free API Access in Nepal's Stock Market

Shrestha argued that restricted access to capital market data and application programming interfaces (APIs) could limit innovation and prevent local technology companies from developing new financial products.

He called for a system that allows qualified technology companies to access APIs and compete in developing stock market applications, analytical tools, and trading-related services.

According to Shrestha, Nepal has a growing pool of technology companies and developers capable of contributing to capital market innovation. Providing wider access to market data could encourage competition and help strengthen the country's financial technology ecosystem.

He also suggested that access to trading-related data should not remain concentrated among a limited number of service providers.

Questions Raised Over NEPSE's Trading Technology

The investor questioned why private companies have significant involvement in the technology infrastructure associated with a trading system owned by NEPSE.

Shrestha argued that the exchange should maintain clear institutional control over its trading infrastructure while allowing private technology firms to participate through a transparent and competitive framework.

He also suggested that NEPSE could develop and manage technology through its own subsidiary as an alternative approach.

The concerns relate to the distinction between ownership of a trading system, the provision of technical services, and operational control. These are separate issues that require clear contractual arrangements, appropriate oversight, and transparent accountability.

TMS Ownership and Potential Conflicts of Interest

Shrestha also raised questions about the ownership structures of companies operating Trading Management Systems (TMS) used by stockbrokers.

He expressed concern that relationships between TMS providers and stockbrokers could create potential conflicts of interest, particularly where shareholders of technology service providers are also associated with brokerage businesses.

According to Shrestha, the ownership structures of TMS companies should be examined, and any potential conflicts should be appropriately regulated and managed.

A transparent review could help clarify the relationships between technology providers, brokers, and other capital market participants.

However, the concerns expressed at the committee meeting represent the investor's position and should not be treated as proof of wrongdoing by any particular company.

SEBON Urged to Examine Data Access and Technology Governance

Shrestha called on the Securities Board of Nepal (SEBON) to study the existing arrangements governing access to capital market data and trading technology.

The proposed review would examine whether API access is sufficiently open, whether the current arrangements support fair competition, and whether the ownership and governance of TMS providers require additional scrutiny.

Greater clarity regarding technology contracts, access permissions, data governance, and accountability could help stakeholders better understand how Nepal's trading infrastructure is managed.

The issue is particularly relevant as the country's capital market increasingly depends on digital platforms for trading, market information, and investment analysis.

How Could Open API Access Benefit Nepal's Capital Market?

Wider API access, subject to appropriate security and regulatory safeguards, could create opportunities for technology companies to develop new services for investors and market participants.

Potential benefits include:

• More financial technology innovation: Developers could build new market analysis tools, portfolio trackers, and investment applications.
• Greater competition: More qualified service providers could compete to offer technology solutions.
• Improved data accessibility: Investors and developers could access permitted market information through standardized interfaces.
• Better analytical tools: Market participants could develop applications using authorized trading and market data.
• Technology sector growth: Local software companies could gain opportunities to participate in capital market infrastructure development.

These potential benefits would depend on how an open API framework is designed and implemented. Data privacy, cybersecurity, system stability, commercial arrangements, and regulatory compliance would remain important considerations.

What This Means for NEPSE Investors

The debate over NEPSE's technology infrastructure is relevant to investors because trading platforms and market data systems are essential components of the share market.

Reliable technology, transparent governance, and clear accountability can contribute to investor confidence. At the same time, any changes to API access or trading infrastructure would need to protect sensitive information and ensure the stability of the market.

Investors should distinguish between concerns raised by individual stakeholders and findings established through official investigations or regulatory decisions.

For those following the Nepal stock market, developments involving NEPSE, SEBON, TMS providers, and market data access may remain important areas to monitor.

Read more about the NEPSE market and technical analysis on Sarbaguna.

Conclusion

Independent investor Ajay Shrestha has called for free API access, increased competition, and greater scrutiny of technology providers associated with Nepal's capital market.

His proposals include reviewing TMS ownership structures, addressing potential conflicts of interest, and considering the development of trading technology through a NEPSE subsidiary.

The central issue is how Nepal can balance innovation and competition with secure, transparent, and accountable management of its stock market infrastructure. Any future regulatory or operational changes will be important for technology developers, stockbrokers, and investors across the country.

Frequently Asked Questions (FAQ)

1. What did investor Ajay Shrestha say about NEPSE's trading system?

Ajay Shrestha questioned the role of private companies in NEPSE's trading technology and called for greater transparency, open competition, and free API access.

2. What is API access in the stock market?

API access allows authorized software applications to exchange data with another system through a defined interface. In the stock market, APIs can support market-data applications, analytics, and other financial technology services.

3. Why is free API access being demanded in Nepal?

Shrestha argues that easier API access could allow more Nepali technology companies and developers to build stock market applications, encourage competition, and support innovation.

4. What is a TMS in Nepal's share market?

A Trading Management System (TMS) is a platform used by investors to place and manage stock trading orders through their stockbroker.

5. What role does SEBON play in this issue?

SEBON is Nepal's securities market regulator. Shrestha has called on the regulator to examine data access, technology governance, TMS ownership structures, and potential conflicts of interest.

6. Could open API access benefit NEPSE investors?

Potentially. Subject to appropriate safeguards, wider access could encourage new analytical tools, market-data applications, and investment technology services. The actual benefits would depend on implementation.

7. Does the allegation mean that NEPSE is controlled by a private company?

The claim reflects concerns raised by investor Ajay Shrestha. It should not be treated as an independently established finding that a private company controls NEPSE. The precise division of ownership, technical responsibility, and operational authority requires verification through official documentation.

8. Where can beginners learn about the Nepal stock market?

Beginners can explore share market training in Nepal to learn about market fundamentals, technical analysis, and trading concepts.

Learn with Sarbaguna: Explore our Share Market Training Course in Nepal, NEPSE Technical Analysis, and Forex Trading Course in Nepal.

For training and course inquiries: Deep Thapa — Call/WhatsApp: 9849290806.