Share trading has become uncertain again as the government and regulatory authority both seems least concerned about the investors.
Nepal Stock Exchange (Nepse) today evening published a notice extending the suspension of share trading activities in the securities market that was going to start trading from Sunday.
A week ago, Securities Board of Nepal (Sebon) has asked the Nepse to do necessary preparations to start share trading from Sunday as the government has relaxed the lockdown since June 15. Earlier, the Nepse had also claimed that it was preparing for the share trading from Sunday. But Nepse suspended share trading – publishing a notice Saturday evening – until further notice.
According to the notice published by the Nepse, the Nepse will remain closed from June 21 onwards until further notice.
The share trading has been halted after the government imposed lockdown – to contain the spread of coronavirus (Covid-19) – from March 24. But the secondary market witnessed trading – after a huge pressure from the investors – for 2 days on May 12 and 13 for two hours each day. As the market continue to drop, Nepse suspended the trading again. “The immature decision of both the Sebon – the regulator – and Nepse is to blame for the longest suspension of the share trade,” the angry investors said, adding that the Finance Ministry treats Sebon as its department not as a regulator of the capital market. “The incumbent finance minister Dr Yuba raj Khatiwada takes share market as unproductive sector, though it is the best vehicle for capital formation for the limited-income people and also for those who have a little savings.”
Citing the board’s decision – as per the instruction of the government agencies to halt mobility for Covid 19 prevention – Nepse has clarified that the suspension will remain in place until there’s any new development, the statement reads.
The investors, however, blame the regulator and government for their apathy towards the share market, and also smell rat. “There has been a talk going around that the share trading has been halted to replace new software in place of current software,” they claimed, adding that the Finance Ministry is hands on globe with the provider of the new software, for whom the share market and investors have been made scapegoat. “A huge policy corruption is been suspected in the Nepse, and Sebon cannot act on its own as it is neither an autonomous regulator like central bank nor has any legal teeth and manpower to play a real regulator because the incumbent government is not share-market friendly.”
Nepal Stock Exchange (Nepse) today evening published a notice extending the suspension of share trading activities in the securities market that was going to start trading from Sunday.
A week ago, Securities Board of Nepal (Sebon) has asked the Nepse to do necessary preparations to start share trading from Sunday as the government has relaxed the lockdown since June 15. Earlier, the Nepse had also claimed that it was preparing for the share trading from Sunday. But Nepse suspended share trading – publishing a notice Saturday evening – until further notice.
According to the notice published by the Nepse, the Nepse will remain closed from June 21 onwards until further notice.
The share trading has been halted after the government imposed lockdown – to contain the spread of coronavirus (Covid-19) – from March 24. But the secondary market witnessed trading – after a huge pressure from the investors – for 2 days on May 12 and 13 for two hours each day. As the market continue to drop, Nepse suspended the trading again. “The immature decision of both the Sebon – the regulator – and Nepse is to blame for the longest suspension of the share trade,” the angry investors said, adding that the Finance Ministry treats Sebon as its department not as a regulator of the capital market. “The incumbent finance minister Dr Yuba raj Khatiwada takes share market as unproductive sector, though it is the best vehicle for capital formation for the limited-income people and also for those who have a little savings.”
Citing the board’s decision – as per the instruction of the government agencies to halt mobility for Covid 19 prevention – Nepse has clarified that the suspension will remain in place until there’s any new development, the statement reads.
The investors, however, blame the regulator and government for their apathy towards the share market, and also smell rat. “There has been a talk going around that the share trading has been halted to replace new software in place of current software,” they claimed, adding that the Finance Ministry is hands on globe with the provider of the new software, for whom the share market and investors have been made scapegoat. “A huge policy corruption is been suspected in the Nepse, and Sebon cannot act on its own as it is neither an autonomous regulator like central bank nor has any legal teeth and manpower to play a real regulator because the incumbent government is not share-market friendly.”
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