Wednesday, May 13, 2020

Share Market to open for 2 hours from Tuesday


Kathmandu, May 8
The Securities Board of Nepal (SEBON) said on Friday that the share market would resume operation from May 12, Tuesday after remaining shut for about seven weeks.
Spokesperson of the board Niraj Giri said that the decision was made as per the Cabinet decision on Wedesday, and following a discussion with the stakeholder organisations – Nepal Stock Exchange (NEPSE), CDS and Clearing, merchant bankers, broker agencies and depository participants.
The market will be opened for two hours every from 11 PM to 1 PM and all transactions will be online. However, initially the brokerage firm will motivate and guide the investors to use online system in share transactions for the coming two months while the new system will be made mandatorily from the beginning of the next fiscal year, mid-July.
However, NEPSE, CDSC, merchant bankers, depository participants and broker companies should open their offices from Sunday in order to make them ready for the market.
 “Make an arrangement to create account of every investor in ‘Mero Share’ and make transactions and payments through the same system,” SEBON directed the NEPSE and other concerned agencies.
The investors can open their account in Mero Share without any fees till mid-July.
According to the board, the brokerage firms should strictly take margin from the investors as per the law.
The new directives from the SEBON has a provision to close the shares transactions if the NEPSE index is increased or decreased by 2 per cent.
It also said that the investors can obtain the password and user ID to conduce online transaction of securities without any charges till mid-July. They have to pay to obtain the same facility beyond that period.
The SEBON has also directed to maintain Help Desk to hear the grievances of the investors.
NEPSE and CDSC will create safety protocol which will be implemented by all share brokerage firms, depository participants and merchant bankers. All the institutions will run their operations with just one-third of their human resources who will attend the office in different slots.
The capital market regulator also said that the concerned institutions will get passes for only a third of their available vehicle. Such passes will be provided by the board.


Published in The Rising Nepal daily on 9 May 2020. 

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