Nepse prepares promoters' share trading

Nepal Stock exchange (Nepse) — the sole secondary market — is preparing for the trading of promoters' shares soon.
Nepali capital market has been on fire since couple of months due to less supply of the shares for trading at the Nepse floor. "The trading of promoters' shares will help expand the market," Rewat Bahadur Karki, general manager and chief executive officer of the Nepse, said, adding that the market will also be dynamic.
However, the promoters cannot fix the price arbitrarily. "For the first trading at the floor, the lower limit of such share price is fixed," he informed. "It cannot be less than five times of the company's networth or the current market price, whichever is low."
Recently, Nepal Rastra Bank, the regulatory authority of the financial market has brought the rule that promoters can sell 19 per cent of their 70 per cent stake through the secondary market.
Similarly, Nepse is also planning to start Over the Counter (OTC) market also. "For the delisted companies and those companies that could not list themselves at Nepse, its a better option," he said. The share holders of the delisted companies will benefit from the starting of OTC market.
Nepse has started trading through automation from the starting of this fiscal year. "At present, Nepse is also providing Real Time Information to the investors," he said, adding that the trading hour has also been increased to three hours from two hours.
"Stock brokers need not come to the Nepse floor for trading now as Nepse has provided them Wide-Area Network (WAN), an extended facility in its bid to modernise the capital; market," Karki added. However, Nepse's attempt to add more brokers has been halted at the last stage last month. "We will add the numbers of stock brokers as soon as the Constituent Assembly election will be over," he promised.
Launching 'Nepse newsletter,' an English language that will be published in two months and provides information on the activities of Nepse in its bid to make investors more aware of the secondary market today Karki said that Nepse is also bringing 'Trading Statistics and Market Review' monthly from Baishakh.