Nepal Stock Exchange implements mandatory IT audit system for brokers

Kathmandu. KATHMANDU: Nepal Stock Exchange (Nepse) has issued ‘IT Audit Guidelines-2026’ to make the digital infrastructure of the capital market safe and reliable.

As per the new provision, every broker will have to conduct the IT audit at least once in two years and the new broker will have to conduct the first audit within six months of starting the transaction. The audit should be done through an accredited IT expert or audit firm and the report should be submitted to NEPSE. According to the directive, all digital structures including trade management system (TMS), back office software, customer data management, servers, databases, networks, websites and mobile apps will come under the purview of testing.

In addition, the effectiveness of user verification, data backup, firewall, encryption and cybersecurity policies will also have to be mandatorily tested. NEPSE has stated that it has institutionalized the audit in view of the increasing cyber risk with the expansion of online transactions. There is also a provision to take action against broker companies that violate the directive.