The Nepal Stock Exchange (NEPSE) has implemented the ‘IT Audit Guidelines 2083’ to enhance the security of trading systems and protect investor information in the stock market. Under the new guidelines, all broker companies are required to conduct a mandatory information technology (IT) audit of their systems. NEPSE stated that, as the stock market is fully digital, this move aims to reduce risks such as hacking, data leaks, and technical vulnerabilities.
According to the guidelines, all broker companies must conduct an IT audit at least once every two years. Existing brokers must complete the audit within six months of the guideline’s issuance and submit their reports to NEPSE, while new brokers must carry out their first audit within six months of starting operations. Additionally, brokers making significant system upgrades or changes are required to conduct an additional audit in the same year.
The IT audit will cover the security and reliability of all systems used by brokers, including the Trade Management System (TMS), back-office systems, mobile applications, websites, and network infrastructure. Special attention will be given to cybersecurity policies, data protection and backup systems, unauthorized access controls, and business continuity capabilities.
NEPSE has also set qualifications for auditing firms. Firms must be registered in Nepal, tax-compliant, and have prior experience conducting at least one IT audit in the banking, insurance, or capital market sector. They must also have personnel skilled in information security and cybersecurity. NEPSE has emphasized that brokers failing to comply with the guidelines or not submitting reports on time will be penalized according to existing regulations.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
