Nepal Stock Exchange (Nepse) — the country’s only secondary market —
will remain closed the coming week as well as some big investors and the
brokerage companies are putting pressure not to open the market from
Sunday.
Nepse had intended to reopen the market for trading from May 17 after the massive earthquake of April 25 that reportedly damaged the offices of some brokerage firms and Registrar to Shares (RTS).
Even though Nepse has not issued an official notice, its General Manager Sitaram Thapaliya told The Himalayan Times that it would not be possible to resume trading from Sunday as planned earlier, because its stakeholders — RTS, brokerage companies, Central Depository System (CDS) and Clearing Ltd and investors are not prepared yet.
During the meeting with its stakeholders today, some of them proposed reopening the market for just an hour from Sunday for a few days until the stakeholders are prepared to run the market in full-fledged mode, according to Thapaliya.
He further said that Nepse cannot accept the proposal to reopen the market for a few hours and so it will run in full fledged manner from May 24.
“In this respect, Nepse will inform its regulator, Securities Board of Nepal (Sebon) tomorrow,” Thapaliya asserted.
Some of the RTS, namely, Civil Capital, Siddhartha Capital, NMB Capital and Growmore Merchant Banker have asked for an additional period of one week to set up their offices, which had suffered damages during the earthquake. Similarly, CDS and Clearing Ltd is also going to shift its office to Nepse premises in Bhadrakali.
This means that Nepse will remain closed for a month after the quake, when the investors may be in dire need of capital. Some reports even allege that big investors, who are a handful in number, are exerting pressure on Nepse not to reopen the market in the immediate future citing the probability of a bearish trend in the market.
According to Deependra Agrawal, a member of Investors’ Forum, it might be prudent for Nepse to remain closed for two more weeks. “There are possibilities of huge selling pressure once the stock market reopens and that could adversely affect small investors.”
However, Nepse has been widely criticised for its failure in serving investors at such a critical time.
source: the himalayan times, 17 may 2015
LINK
Nepse had intended to reopen the market for trading from May 17 after the massive earthquake of April 25 that reportedly damaged the offices of some brokerage firms and Registrar to Shares (RTS).
Even though Nepse has not issued an official notice, its General Manager Sitaram Thapaliya told The Himalayan Times that it would not be possible to resume trading from Sunday as planned earlier, because its stakeholders — RTS, brokerage companies, Central Depository System (CDS) and Clearing Ltd and investors are not prepared yet.
During the meeting with its stakeholders today, some of them proposed reopening the market for just an hour from Sunday for a few days until the stakeholders are prepared to run the market in full-fledged mode, according to Thapaliya.
He further said that Nepse cannot accept the proposal to reopen the market for a few hours and so it will run in full fledged manner from May 24.
“In this respect, Nepse will inform its regulator, Securities Board of Nepal (Sebon) tomorrow,” Thapaliya asserted.
Some of the RTS, namely, Civil Capital, Siddhartha Capital, NMB Capital and Growmore Merchant Banker have asked for an additional period of one week to set up their offices, which had suffered damages during the earthquake. Similarly, CDS and Clearing Ltd is also going to shift its office to Nepse premises in Bhadrakali.
This means that Nepse will remain closed for a month after the quake, when the investors may be in dire need of capital. Some reports even allege that big investors, who are a handful in number, are exerting pressure on Nepse not to reopen the market in the immediate future citing the probability of a bearish trend in the market.
According to Deependra Agrawal, a member of Investors’ Forum, it might be prudent for Nepse to remain closed for two more weeks. “There are possibilities of huge selling pressure once the stock market reopens and that could adversely affect small investors.”
However, Nepse has been widely criticised for its failure in serving investors at such a critical time.
source: the himalayan times, 17 may 2015
LINK
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